Claiming Rental Property Depreciation for investment properties is simple when you have a Tax Depreciation Schedule. Investment Property Depreciation is often the largest claimable tax deduction for rental properties. Savvy property investors know that claiming property depreciation on their investment properties maximises their cash return.
What is Property Depreciation?
Property Depreciation is just compensation for wear and tear on rental investment properties. It’s nothing more complicated than that. Businesses claim depreciation on their ‘business assets’: computers, furniture, vehicles etc.
To a property investor, a rental property is like a business asset, so they can depreciate it. The building itself depreciates, as do the appliances, floor coverings, hot water unit etc.
Investment Property Depreciation is Calculated & Shown in Your Depreciation Schedule
We were asked recently what a Tax Depreciation Schedule is. An accountant had told their client they needed a Tax Depreciation Schedule and to call us. So the client asked us what a Tax Depreciation Schedule was (accountants charge by the hour and a long conversation with us is free.)
A Depreciation Schedule is a document that clearly shows the yearly property depreciation deductions you’re entitled to claim on your investment property
Property Depreciation is treated by your accountant as just another tax deduction. Every year you probably claim interest payments, council rates, water rates, maybe property manager fees as tax deductions.
Property Depreciation is a deduction many first time property investors fail to claim – often because they don’t know about it. But you know about it now, don’t you.
The difference between property depreciation and those other tax deductions is working out how much property depreciation you can claim. The only way to know how much depreciation you are entitled to is to get someone like us to create a property Depreciation Schedule for you.
Property Depreciation and Quantity Surveyors
Some people want to know why their accountant can’t take care of it. That’s because in most cases, putting together a property Depreciation Schedule for depreciation requires somebody being able to estimate the construction cost of the building when it was built. Accountants can’t do that.
The people most qualified to estimate building costs are Quantity Surveyors. We are the only truly national company that still uses Quantity Surveyors on the ground to inspect properties. Call us old fashioned, but we think using Quantity Surveyors to inspect properties and then estimate the construction costs and value the Assets is more accurate than sending someone to the property who just gathers some information for someone else to cost.
So now you know what Property Depreciation is and the ongoing financial benefit of a Depreciation Schedule, what are you waiting for?
To find out how Depreciator represents genuine value, call us NOW on 1300 66 00 33 , email us at info@depreciator.com.au , or enquire online
Some older properties (built before 1988) that are completely unrenovated or unimproved will have no or minimal depreciation available, but … most properties of that age have had some work done and that work may mean substantial depreciation can be claimed. You should always ask us to evaluate every property; it’s FREE so why wouldn’t you?
We will check for renovations and improvements that may not be obvious to the untrained eye. Don’t risk missing out on what may be a substantial claim.
You can find out more about the typical depreciation expected on a range of older properties here: https://depreciator.com.au/why-depreciator/affiliates/typical-residential-depreciation-deductions/
Sometimes also called a Tax Depreciation Report or just a Depreciation Schedule, a Tax Depreciation Schedule is a document that shows your accountant the tax deduction they can claim for depreciation each year in your tax return.
Depreciation on your investment property is just compensation for wear and tear. Buildings wear out. So do stoves, carpet, etc – especially with tenants. So you get to depreciate them, or write them down, a bit every year. The amount of depreciation you can claim typically needs to be established by a Quantity Surveyor.
Without a Depreciation Schedule, your accountant will not know how much depreciation can be claimed on your property.
It is often the largest claimable tax deduction for rental properties.
It depends. Don’t you hate that answer? How much a Tax Depreciation Schedule costs depends on the location, age of the property, and the amount of information you have on the property. Sometimes it may not be worth you paying somebody to inspect. We have a solution for those cases. In a quick phone call 1300 660033, the team at Depreciator can work out the best way to tackle your job and give you a price. You can also lodge an obligation free enquiry here.
There are three easy ways to get your Tax Depreciation Schedule with Depreciator:
- Order your Depreciation Schedule online
- Schedule a call with one of our Depreciation Schedule Specialists
- Call our team on 1300 66 00 33
We guarantee the returns of your Depreciation Schedule so there’s no risk to you. Even better, if it’s not worthwhile having a Depreciation Schedule done we’ll tell you within a few minutes and advise against having one prepared.
2X Depreciation Guarantee for All Existing Investment Properties
For residential properties built after September 1987, if we can’t get you twice our fee in deductions in the first full year, your Schedule is FREE.
Unique 10X Depreciation Guarantee For Brand-New Investment Properties
For residential properties where your tenants are the first people to live there, if we can’t get you 10 times our fee in deductions in the first full year, your Schedule is FREE.
Read more about the Depreciator Guarantees here: https://depreciator.com.au/depreciator-guarantee
