Something you didn’t know about depreciation

Something you didn't know about depreciation

Welcome to our new monthly series for accountants, advisors, and in-the-know investors.

For over 20 years, our sole focus has Depreciation for investment property; it’s  all we do. You can tap into that wealth of experience right here. With a new informative and useful article every month during tax season.

#1

Are your clients maximising depreciation?

Without your help, they might not be.  And who is there to help you? Depreciator. We’ve been doing this for over 20 years, so we know all the ins and outs of depreciation. Commercial, residential, even farms. If you have a client  you'd like us to help claim depreciation on a residential or commercial property, …

#2

Are you depreciating commercial fitouts correctly?

Chances are you’re not. Some of them even we find tricky, and we have been doing Depreciation Schedules for over 20 years. If you aren’t doing it properly, your clients might be missing out on deductions. Sure, if it’s just a small factory and the client has just installed a mezzanine and some racking, that’s …

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    #3

    What can be depreciated beyond a building?

    We’re not talking here about the Depreciating Assets, or Plant and Equipment, but we’ll touch on them - we have covered these previously. We want to focus this month on the ‘structural improvements’, or Capital Works, additional to an actual building. Some Quantity Surveyors miss them, and that means your clients miss out on some …

    #4

    Which has more depreciation? Houses, apartments or commercial properties?

    It's something we get asked often. You might, too. Our answer is always, 'It depends'. We follow that up with pointing out that the depreciation deduction should not be the main factor in making a purchase decision, though it is a nice deduction to take off the table every year with no need to outlay …

    #5

    What are the common mistakes we see in Depreciation Schedules?

    This is the time of year when we reflect.  On the footy finals, maybe Melbourne Cup, certainly on tax season. There are some common mistakes we see in Depreciation Schedules every year, and this year was no exception. Some of you sent them to us to seek our opinion. So we thought given you would …

    #6

    How do you deal with the disposal of Capital Works in a rental property?

    We have had a few accountants get in touch with us about this lately and we have a theory. That pesky virus stopped people from travelling and we all know the unanticipated consequence was huge interest in property - that discretionary spending money had to go somewhere. So people were renovating properties and building granny …

    #7

    Do you know how to treat a Special Levy payment?

    This is the time of year when we get lots of clients contacting us about the tax treatment of Special Levies that were imposed on them last tax year. Most clients of course think (or hope) a Special Levy payment can be expensed, like sinking fund or admin fund contributions. But we, and you, know …

    #8

    Do you know about the downside of Airbnb?

    You will have clients either doing short term rentals now or seriously considering it.  We don’t just mean Airbnb, of course, but that’s the one people think of when we talk about short term rentals. And when we write about the ‘downside’, we don’t mean the odd glass getting smashed or disappointing stains on a …

    #9

    Are your clients maximising depreciation on renovations? #5 July 2023

    Are your clients maximising the depreciation on renovations? Chances are they’re not. There can be a lot of depreciation in renovations and lots of people don’t claim it. Why? Sometimes it’s because the property is old and they assume with an old property there is nothing that can be claimed. Sometimes it’s because they think …

    #10

    The depreciation clock is ticking on older investment properties #4 June 2023

    The depreciation clock is ticking on older investment properties Depreciation will run out soon on some older investment properties, but in the meantime, you'll be surprised at how much depreciation many still have in them. And that applies to residential and commercial properties. We wrote about commercial in our last Something You Didn't Know About …