Whilst the ATO prescribes standard rates for effective lives of construction and plant and equipment items, the varied methodologies used by depreciation service providers can result in thousands of dollars of difference in the final schedule outcome.
A quality depreciation schedule improves the cash-flow position of a property, sometimes substantially, and can impact on the overall investment strategy adopted by investors.
Maximising your depreciation deductions gives you the opportunity to reduce debt, reinvest or simply manage monthly expenses more easily.
You will find everything you need to know about depreciation on this site, or please don’t hesitate to contact our office on 1300 922 220.
When comparing depreciation providers use the features of our report below to ensure you are purchasing a quality report and getting best bang for your buck. Remember that the cost of a depreciation schedule is also 100% tax deductible!
Use the features of our report to compare depreciation schedules in the market:
40-year forecasts
Our reports forecast a full 40 years of deductions making it a once-off purchase for the life of the investment.
Diminishing value and prime cost
Both methods of depreciation are reported allowing the investor to tailor their strategy to their personal circumstances.
Low cost and low value pooling
We utilise both methods so investors can claim aggressively in the earlier years of the investment when costs of holding are typically higher.
Pre-purchase renovations
For older properties our team will identify any works completed over time and ensure construction, asset values and effective lives are calculated from the most recent completion or install dates maximising all potential deductions.
Inclusion of preliminary and consultant fees
Our asset values include apportionment of preliminary and consultant fees to ensure maximum, legitimate values are attributed to all assets.
Disposal of assets – “scrapping”
Where applicable, scrapping is included as a standard in our depreciation schedules to ensure investor claims for renovations are maximised. Scrapped items are valued and written at 100% in the year of disposal.
Full estimation of construction and asset costs
Where full costs are not available our team are qualified to estimate the full costs.
Lifetime of free updates
We will update reports free of charge when investors replace/install new assets and provide evidence of the costs of those assets.
How does a tax depreciation schedule work?
A tax depreciation schedule is a detailed report that outlines asset values of a property and the historical construction costs, as well as an annual value for their depreciation due to ageing and wearing out.
When you utilise your tax depreciation schedule at the end of each financial year, you are essentially paying less tax when you claim the tax depreciation deduction.
How do I claim my depreciation deduction
If you own an investment property, the best way to ensure your depreciation deductions have been maximised is to use a depreciation schedule prepared by Capital Claims Tax Depreciation.
Capital Claims Tax Depreciation was established in 2008 and is an Australian owned and operated business. We serve residential and commercial investors all around the country.
We are a registered tax agent with the Australian Tax Practitioners Board and also Members of the Australian Institute of Quantity Surveyors.
Can I receive and estimate of deductions before I order my depreciation schedule?
For an estimate of depreciation deductions you may be entitled to, please don’t hesitate to get in touch. This is a free service that we offer. To receive your free estimate please complete our simply online ‘Get and estimate’ form or call us on 1300 922 220.
