Typical Residential Depreciation Deductions
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Typical Residential Depreciation Deductions

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Are your depreciation assumptions costing your clients money?

Since the changes to depreciation in the 2017 budget, there has been a steady increase in the number of property investors overpaying tax by failing to claim significant depreciation deductions.

Why?

Because many advisors overestimated the impact of these changes. Those assumptions have frequently led to clients missing out on $1000s in tax deductions, even in the short term.

How do we know? We often get asked for a free assessment a year or two down the track and clients tell us their accountant has not been claiming depreciation.

Below you’ll see some typical depreciation deductions for a range of second-hand properties. As you can see worthwhile deductions are still available in older properties.

Of course, if the properties were bought brand new and leased out immediately by your client, there is significantly more depreciation available.

We even guarantee to find a minimum 2X our fee in depreciation in just the first full year or the schedule for all properties built after 87.

Have you got clients who might be missing out on depreciation deductions? Call or email us today with the address of the property for a free and no obligation assessment so you have some good news next time you speak to your client.

Capital Works / Division 43 estimates only

 

3 – 4 Bedroom HouseYear BuiltDepreciation 1st Full Year5 Year Depreciation
Typical 3-4 Bedroom project home1988$1,400 – $1,800$7,000 – $9,000
1995$2,000 – $2,500$10,000 – $12,500
2000$2,800 – $3,200$14,000 – $16,000
2005$3,000 – $3,700$15,000 – $18,500
2010$4,000 – $4,500$20,000 – $22,500
2015$5,000 – $5,500$25,000 – $27,500
2020$5,500 – $6,000$27,500 – $30,000

 

2 Bedroom Walkup ApartmentYear BuiltDepreciation 1st Full Year5 Year Depreciation
Typical 2 Bedroom apartment in building with no lift1988$900 – $1500$4,500 – $7,500
1995$1700 – $2300$8,500 – $11,500
2000$2200 – $2800$11,000 – $14,000
2005$3000 – $3500$15,000 – $17,500
2010$3500 – $4000$17,500 – $20,000
2015$4500 – $5000$22,500 – $25,000
2020$5000 – $5500$25,000 – $27,500

 

 

2 Bedroom Highrise ApartmentYear BuiltDepreciation 1st Full Year5 Year Depreciation
Typical 2 Bedroom apartment in a medium or highrise development1988$2000 – $2500$10,000 – $12,500
1995$3000 – $3500$15,000 – $17,500
2000$4000 – $4500$20,000 – $22,500
2005$4500 – $5000$22,500 – $25,000
2010$5000 – $5500$22,500 – $27,500
2015$6000 – $6500$30,000 – $32,500
2020$6500 – $7000$32,500 – $35,000

 

Want a hard copy for you or your staff? Building Only Depreciation Quick Guide

These figures are a guide only and the most accurate number is having the property reviewed by on of our Quantity Surveyors.

We also have estimates available for brand new investment properties. Just click here.

Contact the Team

1300 66 00 33 FOR CUSTOMER SERVICE or
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