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Tax Depreciation

As the owner of an investment property you can claim depreciation on your asset and get a reduction in taxable income. These depreciation deductions should be a regular occurrence amongst property Investors. Commonly it seems Investors are not making the most of this tax break, many unaware of the potential savings accessible to them.

Depending on age of the property you can claim the original cost of construction over a number of years. This component is referred to as the “Capital Allowance”. The rate for depreciation on Capital Allowance is either 2.5% or 4% depending on the date of construction.

You may also be able to claim items classified as “Plant and Equipment” in your depreciation. This classification includes white goods, carpets, drapes, furniture, air conditioners, etc. and can be written off over their effective lives.

A tax depreciation schedule is an important tool for all property investors. It’s money available to any owner of an income producing property. It is vital to have an appropriately qualified person prepare your tax depreciation to unlock the maximum sum you’re entitled. Quantity Surveyors have the knowledge and expertise required to prepare comprehensive tax depreciation reports.

SF Property Solutions Pty. Ltd. is able to provide property investors a schedule of depreciable assets at a fixed fee cost. This fee is a tax-deductible expense and is able to be claimed in full in the year in which it is incurred. We offer a reliable, personal and quality service to all of our clients.

A full inspection of the property is carried out to record all depreciable plant and equipment and also to record and assess the original cost of construction. The inspections are arranged through the property manager and carried out at a time that is convenient with the tenants thus ensuring a minimum of disturbance. At the same time owners can have their insurance or maintenance schedule produced. The report that is prepared is valid for the life of the property and is not a recurring annual expense.

Talk to us for more information or if you would like to obtain a quote.