Are all tax depreciation reports equal?
The short answer is no, all Tax Depreciation Reports are not the same. And it is important to realise that the variations in methodology used by different providers in the industry, can make thousands of dollars of difference in the final report outcomes. A quality report improves the cash-flow position of a property, sometimes substantially, and can impact on the overall investment strategy adopted by investors.
A tax depreciation report is much more than just a table of costs. In order to fully maximise the deductions available ensure your quantity surveyor delivers the following:
- A summary of property information
- A detailed list of plant and equipment assets
- Schedules for diminishing value method
- Schedules for low cost and low value pooling
- Schedules for prime cost method
- Nominated effective lives for every each plant and equipment asset
- Nominated depreciation rate applicable for each plant and equipment asset
- A table of division 43 building works, including any renovations by the investor
- 40 year projection covering the life of the building
- A methodology explaining how the report was compiled.
It might surprise you to learn that many suppliers of Tax Depreciation Reports are not utilising low value pooling, do not report both methods of depreciation, do not include pre-and post-purchase renovations or scrapping in their standard reports, and don’t use the most effective, compliant methods of costing assets. This can end up costing investors thousands in lost deductions.
Capital Claims is proud to boast one of the most technically superior, and compliant reports in the industry. A report prepared by Capital Claims ensures clients are claiming the maximum deductions available to them. Anything less just results in a donation to the ATO, at the expense of investors.
With a highly competitive fee, premium service and fast turnaroud, there is no reason investors should have to settle for anything less than a quality Tax Depreciation Report prepared by Capital Claims.
Capital Claims has compiled substantial comparative market information about the processes and methodologies used by Tax Depreciation providers in the market. If you are unsure about whether you are claiming the maximum deductions available, call us for a chat. We’re happy to discuss with you some of the variations we have discovered, and how our report compares.