Tax Depreciation Reports
Tax Depreciation reports are available to the property investor
in accordance with the guidelines stipulated by the Australian
Taxation Office.
Our reports are prepared in full compliance with the guidelines
stipulated by the ATO and include an inspection of your property
by a qualified quantity surveyor to both maximize your claim and
safeguard you, the investor, against the pitfalls of self assessed
claims.
We pride ourselves on the vast number of referrals we
receive in response to our service.
By obtaining a Tax Depreciation Report for your property you
can legally claim money back from the Taxation Office that would
otherwise be unnecessarily forfeited in tax.
The benefits of depreciation are widely recognised in property
circles as the most important factor in achieving a cash positive
situation for your rental property.
Should you have not already done so we recommend that you discuss
the full benefits of depreciation with your accountant.
The role of the Quantity Surveyor
Quantity Surveyors are recognised under the Australian Tax Office
Ruling No. 97/25 as appropriately qualified professionals for
the purposes of assessing the construction value of rental properties.
Specifically TR 97/25 holds that: “Unless they are otherwise
qualified, valuers, real estate agents, accountants and solicitors
generally have neither the relevant qualifications nor experience
to make such an estimate”
Types of Claimable Depreciation
There are two distinct types of building related depreciation
that can be claimed by the taxpayer:
1. Division 43 – Capital Works Deductions
A flat rate of depreciation can be claimed against the original
construction cost of the building. Typically the flat rate applied
is 2.5% per annum however this percentage may increase to 4% subject
to the date of construction and the function of the building.
2. Division 40/42 - Plant and Equipment Allowances
To put it simply you are able to claim a number of items within
a building at an accelerated rate of depreciation that is in excess
of the flat rate provided by the Division 43 allowance. Items
of a building that can be claimed at an accelerated rate include
carpet, airconditioning, appliances, curtains, hot water units
and a multitude of other items that the tax office considers have
a lesser life span than the overall bricks and mortar components
of the building.
Did you Know?
- Division 43 Capital Works deductions can be claimed on all
residential construction that commenced after 17 July 1985.
- Plant and Equipment items can be claimed even if the property
was constructed prior to 17 July 1985.
- As the owners of a strata unit you are entitled to claim a
portion of the value of “common property” areas within
your complex.
- Depreciation is claimable on the value of second hand plant
and equipment regardless of the age of the property
- An immediate deduction is available for items costing $300
or less.
- Our reports are tax deductable
- Our tax depreciation reports are prepared by qualified professionals.
We invite you to contact us directly should you wish to discuss
your property requirements further.
TAX DEPRECIATION REPORT LINKS
Request a Tax Depreciation Quotation
click on the link below to download a Tax Depreciation Quotataion
Request Form onto your computer.
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