Tax depreciation is a valuable tax deduction for property investors. The benefits of a depreciation schedule can also be long lasting. As a result it can provide great assistance to accumulating your wealth and property portfolio over time.
What is a tax depreciation schedule?
A tax depreciation schedule tables you tax deduction entitlements and outlines the breakdown on an annual basis. It simplifies your accounting and tax preparation, provides a higher claim and can last up to 40 years. The amount of entitlement over a 40 year time frame can be quite significant.
A tax depreciation schedule will maximise your cash return
According the BMT Tax Deprecation, a quantity surveyor and specialist in completing depreciation schedules advises, an average benefit of between $5,000 – $10,000 in deductions is achieved for residential properties in the first full financial year claim. To complete a comprehensive tax depreciation schedule it is necessary to conduct a physical site inspection. You can measure, photograph and assess the assets installed for depreciation purposes. This enables the quantity surveyor to achieve the highest possible tax deduction and maintain full compliance with the
Australian Taxation Office. You can also ask your tax accountant to calculate the tax depreciation amount each year, but they will not have the capacity to accurately maximise your claim compared to quantity surveyor. The accountant will also likely charge you an additional service fee to calculate it. The depreciation schedule will not only offer you a higher tax deductible claim, you’ll avoid additional accounting fees each year.
The cost to get a schedule is generally tax deductible
To buy a tax depreciation, you will need to pay a one-off fee in advance. If the property is an investment, the expense is generally tax deductible in the year its paid. It is quite cost effective as the depreciation schedule can then be used each year until the schedule expires. Most quantity surveyors establish the schedule to last between 10-40 years. It is often drafted for 30 years, by they will differ depending on who you choose to complete the schedule.
Who should you speak to?
Crest Property Investments has partnered with
BMT Tax Depreciation. We have an arrangement that benefits our buyers while provide peace of mind that the depreciation schedule has been completed correctly and in the best interest of our clients.
Do you want help buying an investment property?
There are many benefits of owning an investment property. At
Crest Property Investments, we help source properties for buyers. If you’d like to learn more about buying a property, please don’t hesitate to
contact us. We would welcome the opportunity to help with your property purchase.
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While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
June 2020
