Residential Depreciation Schedules
As a residential property investor, the Australian Taxation Office (ATO) has strict rules about what you can and cannot claim as a deduction for your residential investment properties. This makes it hard for many people to make the most of their investment properties.
The ATO permits owners of investment properties to claim a tax deduction for fair wear and tear on the building and its fixtures – known as depreciation.
The only way to make these claims is with a tax depreciation schedule. In fact, a capital allowance and tax depreciation schedule is crucial to lowering your tax liability and boosting your tax refund.
Unlike other deductions where you claim an incurred expense during the year, a tax depreciation schedule lets you make deductions for capital allowance and depreciation on your property over time.
If you’re looking for help in getting a tax depreciation schedule, we are here to help. Our quantity surveyors can save you thousands of dollars in taxes by providing accurate calculations that are compliant with Australian Taxation Office (ATO) regulations. Our team has extensive experience working with investors just like yourself to ensure they get their maximum return from their investments each year.
We offer fast turnaround times and affordable prices so that our clients get their schedules in no time at all.
Call us for a residential depreciation schedule.
Depreciation for Residential Investment Properties
New properties often earn the largest tax deductions because their development expenditures are the greatest, and they are still early in their useful life.
The advantages of claiming depreciation on both the building and all of the associated equipment in a newly completed investment property are available to owners of these investments.
You still require a quantity surveyor to determine and itemise the costs and depreciation deductions of the building and related assets, even if the construction cost of a new build is known.
That being said, because of the 40-year useful lifetime of construction, upgrades, and extra works and assets added over time, older properties can still offer some excellent deductions for investors.
A quantity surveyor can estimate times and prices for depreciation purposes even if the schedule or expenses of the work are unclear.
When it comes to older properties, the timing of the acquisition is crucial. This can help decide if the assets that were used at the time of purchase are eligible for yearly deductions or if you must claim them on the date of the original sale.
Our quantity surveyors are professional and understand the ins and outs of the ATO’s depreciation laws. So whether you’re a new or seasoned investor, we can help maximise your tax deductions for residential investment properties.
Contact us for an experienced quantity surveyor today.
Tax Depreciation Schedules
As discussed, property depreciation is used to maximise after-tax returns on real estate investments, increase cash flow, and boost investment returns.
A depreciation schedule is a document that outlines the value of an asset over time and the associated deductions you can claim for tax purposes.
A quantity surveyor who specialises in understanding the complex tax laws around depreciation and capital allowances prepares this document.
Our quantity surveyors create your document in accordance with the two different methods allowed by the ATO. The diminishing value depreciation technique and the prime cost depreciation method are both included in our tax depreciation reports.
Prime cost depreciation is a straight-line method that assigns the same value to an asset each year, regardless of how much it has been used. Since you depreciate most residential buildings over a 40-year period, this results in a depreciation deduction of 2.5% each year for the facility.
Diminishing value depreciation is an effective way to account for the fact that an asset loses value over time but usually loses more value at the beginning of the depreciation period. This method assigns a greater weight to the deductions in the early years of an asset’s life and decreases this value as the building gets older.
The total depreciation and time period are the same with both the diminishing value and prime cost methods; they are simply distributed differently.
You can choose between the two methods and determine which allows you to tailor your investment property tax deductions to your specific circumstances.
However, the choice is irrevocable, and so you will have to stay with that choice for the entire life of your residential property investment.
Your accountant will be able to advise you on the best approach for your unique situation, so please get in touch with them for help maximising your investment property deductions.
Contact us for more information on depreciation
schedule services.
Residential Quantity Surveyors
Our quantity surveyors are experienced in preparing residential depreciation schedules that maximise your tax deductions.
They are all registered tax agents, so they understand the ATO’s complex depreciation laws and can tailor a schedule to your specific needs.
Our tax depreciation schedules will last for the life of your property and are fully compliant with all ATO regulations. Furthermore, your depreciation schedule is 100% deductible in the year you pay for it.
Not only that, but we guarantee you will save twice our fee in the first full year of depreciation or your depreciation schedule costs nothing.
Residential Depreciation Schedule Services
There is little doubt that if you invest in residential real estate, you need a depreciation schedule to maximise your tax deductions and increase cash flow.
The tax savings from depreciation are among the most significant benefits that the ATO provides a property investor. With the help of our experienced quantity surveyors, you can take full advantage of these benefits.
Registered tax agents, our quantity surveyors have helped thousands of investors claim the maximum amount of depreciation deductions possible. You can be sure that they will create the most accurate and complete depreciation schedule on the market.
Our team is friendly, professional, and knowledgeable. We understand all of the ATO’s rules and regulations, so you don’t have to. All you have to do is bring your depreciation schedule to your accountant and find out how much money you will save every year.