Tax Depreciation reports are available to the property investor in accordance with the guidelines stipulated by the Australian Taxation Office.
Our reports are prepared in full compliance with the guidelines stipulated by the ATO and include an inspection of your property by a qualified quantity surveyor to both maximize your claim and safeguard you, the investor, against the pitfalls of self assessed claims.
We pride ourselves on the vast number of referrals we receive in response to our service.
By obtaining a Tax Depreciation Report for your property you can legally claim money back from the Taxation Office that would otherwise be unnecessarily forfeited in tax.
The benefits of depreciation are widely recognised in property circles as the most important factor in achieving a cash positive situation for your rental property.
Should you have not already done so we recommend that you discuss the full benefits of depreciation with your accountant.
The role of the Quantity Surveyor
Quantity Surveyors are recognised under the Australian Tax Office Ruling No. 97/25 as appropriately qualified professionals for the purposes of assessing the construction value of rental properties.
Specifically TR 97/25 holds that: “Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate”
Types of Claimable Depreciation
There are two distinct types of building related depreciation that can be claimed by the taxpayer:
1. Division 43 – Capital Works Deductions
A flat rate of depreciation can be claimed against the original construction cost of the building. Typically the flat rate applied is 2.5% per annum however this percentage may increase to 4% subject to the date of construction and the function of the building.
2. Division 40/42 - Plant and Equipment Allowances
To put it simply you are able to claim a number of items within a building at an accelerated rate of depreciation that is in excess of the flat rate provided by the Division 43 allowance. Items of a building that can be claimed at an accelerated rate include carpet, airconditioning, appliances, curtains, hot water units and a multitude of other items that the tax office considers have a lesser life span than the overall bricks and mortar components of the building.
Did you Know?
- Division 43 Capital Works deductions can be claimed on all residential construction that commenced after 17 July 1985.
- Plant and Equipment items can be claimed even if the property was constructed prior to 17 July 1985.
- As the owners of a strata unit you are entitled to claim a portion of the value of “common property” areas within your complex.
- Depreciation is claimable on the value of second hand plant and equipment regardless of the age of the property
- An immediate deduction is available for items costing $300 or less.
- Our reports are tax deductable
- Our tax depreciation reports are prepared by qualified professionals. We invite you to contact us directly should you wish to discuss your property requirements further.
TAX DEPRECIATION REPORT LINKS
Request a Tax Depreciation Quotation
click on the link below to download a Tax Depreciation Quotataion Request Form onto your computer.
