Tax time is just around the corner, and with it comes the all-important ‘D’ word – deductions.
If you own an investment property – either residential or commercial – you are entitled to claim tax deductions, regardless of the age of the property.
A tax depreciation schedule will help you reduce your tax bill and is one of the most important deductions you should be aware of as a property investor.
It’s also worth noting that the cost of a tax depreciation schedule is 100% tax deductible.
Can my accountant prepare a depreciation schedule?
Only a qualified quantity surveyor can prepare a tax depreciation schedule to an ATO-approved standard. An accountant is not suitably qualified to estimate construction or renovation costs.
The amount of depreciation available in your investment property depends on the age of the property, its location, size, method of construction and the quantity of internal fixtures and fittings.
Many property owners don’t realise that they can claim depreciation on renovation works over $30,000 in value. If you have already invested in a schedule and have renovated your property over $30,000 in value, you will need to obtain another schedule in order to reflect the changes brought about by a renovation.
When Should I Get a Tax Depreciation Schedule?
The ideal time is close to your settlement date, so that you can have all necessary documentation ready to submit as part of your next tax return.
What Happens When I Book a Tax Depreciation Schedule?
When you book a tax depreciation schedule with The Home Inspection Hub, we will contact you to gather the initial information we need about your property.
For existing properties, we will arrange a time for an inspection with you or your chosen representative. After the inspection, a schedule is then prepared.
For new builds, a schedule can be prepared from your property plans, contract of sale and list of inclusions. As no inspection is required, this is a quicker and more cost-effective option.
Our inspection and report process is carried out by a qualified quantity surveyor who specialises in tax depreciation schedules.
The report we prepare for you is easy to read and contains all of the information your accountant may require.
Get in touch and we will take you through the process and answer any questions you may have.