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.


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 …


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 …

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    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 …


    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 …


    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 …


    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 …


    Commercial properties have been finding favour with investors recently – #3 May 2023

    Why are more investors choosing commercial properties over residential? It’s a trend we’ve been seeing for a few years now. Often it’s SMSFs buying commercial properties, but also individuals. And of course, people choosing to buy rather than rent a property for their own business. Commercial property has always been popular, partly because tenants often …


    Repairs vs Improvements #2 April 2023

    Repairs vs Improvements In the 20 plus years we have been doing Depreciation Schedules, questions about Repairs vs Improvements would outnumber all others put together. And that’s not too surprising. The line between Repairs and Improvements is a bit blurry, so with tax season around the corner, we thought it timely that we focus on …


    Low Value Pool – #1 March 2023

    Maximising the Low Value Pool for your clients This month, we are looking at the opportunities provided by the Low Value Pool. You asked for it. Well, maybe not you specifically, but accountants and advisers often ask us questions about how to make the most of depreciation. We’ve been doing this for over 20 years …