Tax Depreciation Schedules Australia – The saving begins with you!

Depreciation and its significance
The value of man-made goods erodes with time, a fact that holds truer than most for the costs of property and the many elements that make it up. Because of use and gradual wearing away in the natural course of their use causes a gradual decline in the price of any property. But this is not necessarily a bad thing. Depreciation of investment property, meant for income generating purposes can be used to gain significant tax deductions.

Investment property tax deductions are one of the most overlooked means of gaining a breather on your taxes. Tax depreciation, also known as property depreciation, is given on residential or commercial investment properties. There are basically two types of deductions available.

Depreciation on Building Allowance – Here the cost of the construction of the building is the only factor considered. It would include things like concrete, flooring, brickwork, plumbing etc.

Depreciation on Plant and Equipment – In this case the list of items is limited only to the activity of the plant or commercial establishment. Everything in the plant, from the tiles to the light fixtures, is a part of an exhaustive list made of all the items in the building.

The Australian Taxation Office recognizes the lifespan of a building as 40 years from the day construction ends. The ATO recognizes that the value of a fixed asset like a building, among others, fades with time and appoints quantity surveyors to assess it. This depreciation of value, when used right, can be of great help, and that is exactly what we, at Tax Depreciation and Schedules Australia, can do for you.

The depreciation schedule, as asked by the ATO, is the first step on this path of tax deductions.

Tax Depreciation Schedule
A depreciation schedule is an accounting procedure where the amount of value left in each piece of equipment is determined. Having a depreciation schedule and depreciation report made for a property you recently bought is a very good idea and will help you understand how you can save more on your taxable income. It will give you a fair idea of the lifespan of the major elements of your property and help you plan accordingly.

Rules mandate that any property built after 1985, or one whose costs of construction are unknown, need to schedule a site inspection with a qualified quantity inspector. Having a tax depreciation schedule, as asked by the ATO, also helps in guarding you against faulty figures and gives you an exact idea of how much you stand to save on your fixed assets. Having depreciation schedule and depreciation report for rental properties created before tenants move in is also good as it saves them the hassle.

At Tax Deduction Schedules Australia we provide you with a thorough tax depreciation schedule detailed with all the requisite items. Our highly experienced quantity surveyors will make a note of all the items and take photographs, where necessary, in order to have a thorough record. A tax depreciation schedule helps you gain the necessary tax deductions when your accountant finally does the taxes at the end of the financial year.

Our detailed depreciation schedule, as asked by the ATO, and the subsequent report consists of, but is not limited to, the following important points:

  • A detailed and easy to understand report that depicts how we reached our conclusions
  • Building allowance details
  • Plant and equipment allowance details
  • Expected lifespan of each item along with its claim rate
  • Estimated annual claim
Tax Depreciation Schedules Australia prides itself in providing you the most comprehensive account of your fixed assets to ensure maximum savings for you. Our quantity surveyors, familiar with the ATO depreciation rates, make note of every item in constructing their report. The best thing about this is that the fees of the quantity surveyor are completely tax deductible.

Depreciation can be calculated using one of two methods.

Straight line method – Depreciation, here, is calculated according to the cost price of the asset, and the same amount is deducted every year.

Diminishing value – In this case the amount of depreciation is arrived upon according to the adjusted tax value of the asset. This figure is the original cost of the asset minus any depreciation over the years.

The diminishing value method helps the investor claim a large chunk of the deduction faster, while the straight line method helps the investor pace it out. Any of these methods can be used depending upon the situation and the will of the client. Rental property depreciation or investment property depreciation, the above methods will help you reach the exact figure.

How to let property depreciation help you
Investment property depreciation or rental property depreciation, either way the owner stands to gain a healthy deduction on his or her taxes. Getting a depreciation schedule for a rented property before you renovate it can prove to be very handy when you file for a property depreciation expense. While the ATO would want to know how much you spent on it, it would still entail a large deduction.

Every property owner should stay abreast of property depreciation reports of their properties. A property depreciation report not only lists the lifespan of all the elements in the structure it provides a strong claim when the time comes to avail tax deductions.

A property owner can even claim renovation claims for work done by the previous owner, provided an exact cost for the same is provided. In cases where costs are unknown the ATO assigns a quantity surveyor to make the necessary estimates. Owners of residential properties constructed after July, 1985, can claim both building as well as plant and equipment allowances. Buildings constructed before this date make their eligible only for plant and equipment allowances.

Even if you have bought your property three years ago you can still claim your deductions. Your accountants can amend tax figures back up to two years. However, there are exceptions to this rule. Investment property tax deductions can be beneficial to the owner who understands their significance.

At your service
Tax Depreciation Schedules Australia is staffed by one of the most experienced and dedicated teams in the country. With our keen attention to detail and impeccable service we have manage to secure the goodwill of a vast array of satisfied clients. Our hope is to provide for our clients tax deductions significant enough to justify the employment they have granted us.

Research has shown that four out five people do not know about the deductions they can avail from property depreciation. In an age of high competition it only makes sense to grab all the opportunities thrown our way. Something as simple as creating a depreciation schedule for a rental property can go a long way in ensuring a tax deduction.

With our timely reports, efficient service and attention to detail, Tax Depreciation Schedules Australia aims not only to provide you with the best tax benefits but also the best service in the industry. So wait no further and let the saving begin. A well qualified and certified property valuers sydney will undertake an inspection to determine the property’s current value in the australian property market. Improvements are measured and comparable evidence is analysed and provided to you. Our team of skilled highly professional and motivated property valuers Melbourne are skilled and experience with providing extended support.

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James Marshal
Tax Depreciation Schedules Australia strives to deliver reasonable yet efficient tax depreciation services. Their staffs are courteous, accessible and proficient to make your tax deduction claims a reality." - James Marshal
Michael Johnson
"The compassionate work attitude at Tax Depreciation Schedules Australia make their clients feel benefitted from day one, and the report that they deliver is unquestionably great." - Michael Johnson