Tax Depreciation Schedule Services
There are regulations in the tax law that allow investors to take certain deductions or exclusions from their taxable income. One such provision is for depreciation.
If you invest in residential or commercial real estate, you need to take advantage of every tax break you can in order to offset the income you make from your property. One such tax break is the depreciation deduction available for most types of investment real estate.
When you purchase a depreciable property, such as land, buildings, and equipment, the Australian Taxation Office (ATO) says you can deduct a portion of the cost each year while you own it. However, many people do not take full advantage of this deduction because they do not understand what a depreciation schedule is and how it applies to their situation.
In order to get the most out of your tax deduction, it is essential to consult with a quantity surveyor to get a depreciation schedule that is specific to your property.
Call us now to learn more.
Tax Depreciation
Depreciation refers to the accounting concept that assets that undergo wear and tear lose value over time. An investor can deduct this loss of value from the business’s taxable income.
This loss of value can be theoretical in nature – the asset does not actually have to go down in value. That is why a real estate asset can appreciate on the open market but still be considered a depreciating asset.
The ATO deems this depreciation an investment expense, just like a repair or mortgage interest. You can deduct the cost of an asset each year that it is in use via depreciation. This effectively reduces the income you generate from the property, which lowers your tax liability.
Depreciation is a tremendous benefit for the property investor, but to be able to claim depreciation, you need a tax depreciation schedule.
For your tax depreciation schedule, call us today.
Tax Depreciation Schedules
By law, only a select group of registered tax agents can create tax depreciation schedules. We know these professionals as quantity surveyors, and they have the expertise to calculate precisely how much depreciation you can claim on your assets.
Quantity surveyors will look both at the capital works and plant items and equipment in an investment property.
Capital works include the construction costs of the premises, as well as any additions, extensions, or renovations that have been carried out.
Plant and equipment items include assets that you can remove without damaging the building. This includes things that decline in value and wear out, such as ovens, air conditioning, light fittings, furniture, and even carpets.
The quantity surveyor will evaluate all of your assets and then develop a schedule that tells you how much you can claim in depreciation for your investment property.
You will get an efficient and rapid turnaround on your tax depreciation schedule when you choose us to be your quantity surveyor.
Speak to a quantity surveyor - call us now.
Our Services
Our team of quantity surveyors provides the most comprehensive set of tax depreciation schedule services in the industry.
Their experience and expertise in this area ensure that you will be able to claim the maximum allowable depreciation on your property.
Some of the services they provide are as follows:
- Provide a comprehensive on-site survey and inspection of your investment property.
- Analyze the original structure and every addition, extension, and renovation that has been subsequently created. This will include common areas and shared facilities.
- Identify and evaluate all plant and equipment assets in the property. Determine costs and the appropriate rate of depreciation for each individual item.
- Look at asset expenditures that occurred after the purchase of the property, such as furniture, appliances, and other fixtures.
- Prepare a detailed and customized depreciation schedule for your investment property. This multi-page document will be acceptable to the ATO and last for the effective life of your property.
- Send your tax depreciation schedule to you and your accountant so you can use it for tax preparation.
Your schedule will provide depreciation tables for both the prime-cost and diminishing-value methods. These are the two ATO-approved ways that you can depreciate your investments assets.
Prime-cost is a straight line table that allows you to claim an equal percentage of the purchase price each year over the asset’s effective life.
On the other hand, the diminishing-value method allows you to claim a higher percentage of depreciation losses in the early years of an asset’s life, and this percentage decreases as the item grows closer to the end of its useful life.
This is an acceptable method because most items lose more of their value earlier in their useful life than later. Diminishing-value, therefore, more closely reflects the actual decrease in value of an asset over its lifetime.
As your accountant will tell you, choosing your depreciation method is an important decision that can significantly impact your tax liability. And once you select one method, you cannot switch to the other.
That’s one reason it’s essential to have a quantity surveyor create your depreciation schedule. This document will allow your accountant to advise you on the best method for your investment property and then help you claim every dollar of allowable depreciation.
Call us to discuss our depreciation schedule services.
Depreciation Schedule Services
Depreciation is a fantastic benefit for the property investor, but to be able to claim depreciation, you need a tax depreciation schedule.
You can use it to offset taxes on the income that you make each year by deducting a portion of the cost of your investment.
By working with one of our professional and expert quantity surveyors, you can take advantage of all the tax benefits that depreciation has to offer.
Not only can you have the confidence that comes with knowing you have the most experienced team in Australia doing your survey, but you also have our industry-leading guarantee.
By using our tax depreciation schedule, you will recover twice the cost of your investment within the first full year, or we will refund your survey fee.
And not only that, but you can deduct 100% of that fee from your taxes in the year that we do the survey.
You have nothing to lose and so much to gain, so contact us today to schedule a survey.