Comprehensive & ATO Compliant

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All Metro Areas

Just $550 inc GST

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ATO Compliant

Industry-qualified quantity surveyors & trained in-house staff provide reliable, accurate, ATO-compliant depreciation reports in accordance with the latest government rulings & interpretations.

Comprehensive Reporting

DEPPRO produces a comprehensive investment property depreciation report to enable investors to claim their full depreciation entitlements as quickly as possible.

Maximum Entitlements

DEPPRO can help you claim maximum tax entitlements on your property and reduce your taxable income, remember even the oldest propery has tax depreciation value.

Property Depreciation

What is Property Depreciation Schedule, and How Can Tax Depreciation and Depreciation on Your Investment Property Increase Cash Flow

You have purchased a residential property in a good neighbourhood as an investment, so depreciation is the last thing you probably consider. After all, the objective is for the property to increase in value. Property depreciation is a fact, but if managed as part of the investment, it becomes a profit generator for the savvy investor.

Let’s Explain Depreciation on an Investment Property…

The residential property consists of two parts: the capital works and the plant and equipment. These two parts must always be separated in the portfolio, as the former appreciate, while the latter almost always depreciates under normal conditions. We fleetingly describe the differences and reasons below:

  • Capital works. This is the actual property, meaning the plot of land, the house and all other non-removable structures. Capital works constitute the real investment and should be kept in a well-maintained state of repair for maximum return later at the disposal date. Usually, capital works do not depreciate, only requiring repairs.
  • Plant and equipment. This is the technical term for all the removable or replaceable items on the property. Examples include the curtain rails, the stove, the water heater and security gates. These items usually have a limited lifespan and will be replaced several times during the investment period. The depreciation on the plant and equipment must be accurately calculated for maximum tax benefits.

Tax Depreciation Is SO Important

Expenditures made for the maintenance and upkeep of an investment residential property are tax-deductible. This is generally the obvious deduction that investors make when filing their tax forms with the ATO. The expenditures are for when repairs are necessary, which is then difficult to work into the budget and a shock to the cash flow. If the investor uses a depreciation schedule for the property, they can partly deduct most future replacements and repairs yearly. There are, however, a few things to keep in mind:

  • The ATO has decided that after May 2017, depreciation on an investment residential property can’t the deducted from income tax. They agreed that only improvements and replacements to plant and equipment made by the existing owner after May 2017 could be depreciated against income. Everything that was bought part and parcel with the property can’t be depreciated anymore.
  • The ATO only accepts tax depreciation reports compiled by a qualified quantity surveyor and is in the prescribed format. The benefit is that a quantity surveyor can assess the current value of the existing plant and equipment which came with the property when bought. Although it can’t be depreciated, the value may be offset against the capital gains tax due when the property is sold for a profit at a later date.

DEPPRO compiles tax depreciation reports for property investors anywhere in Australia. We follow a 40-year investment strategy that increases the monthly cash flow for rental income through tax depreciation schedules accepted by the ATO.

The Deppro Difference

Guaranteed entitlements
DEPPRO guarantees to assess depreciation entitlements to an amount at least double its professional fees in the first full financial year. If we don’t, we will refund all fees and provide the report for free!

A Full Audit Trail

DEPPRO provides a full audit and paper trail for every client, plus support information on request, free of charge. We also assist with ATO audits.

Timely And Affordable

DEPPRO provides a professional, timely service at an affordable price. Our fees start at less than $600 and are fully tax deductible.

No Outsourcing

DEPPRO provides a personalised service from beginning to end. We do not outsource work or fee share.

Physical Inspections

We insist on walk-through property assessments so our own in-house qualified inspectors can ensure maximum savings can be legitimately achieved by investors on depreciable items.

What Our Clients Say

Bell Partners enjoys the personalised service received from DEPPRO, together with their fast, efficient and precise reports.

We have been using DEPPRO’s services on behalf of our clients for the past 12 months. During this time we have found their responsiveness and level of professionalism to be outstanding.

We have been dealing with DEPPRO since March 2012, and have found their service and client care to be exceptional. DEPPRO is our preferred supplier in this space.

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