The value of your property does go down every year. While that is something you might not be particularly chuffed about, you can rejoice in the fact that claiming depreciation on property is the perfect opportunity to recover your losses. This can be done is by setting off those depreciated amounts from the property tax you are supposed to pay.
How to Assess Property Depreciation?
The tax benefits we spoke about at the start would be granted as per the numbers provided by a formal property tax depreciation schedule. This is done by employing the services of a qualified and certified quantity surveyor. The surveyor would visit your property in person and take all necessary measurements of the assets on your property.
Using Property Depreciation for Claiming Depreciation on Property
The quantity surveyor’s report would be part of the overall property depreciation reports. These reports would help in preparing the tax return in such a way that would allow for claiming depreciation on your property. Every asset on the property is usually of two types – it is either a capital works or plant and equipment. Depending on the type, there are different depreciation rates laid down by the ATO.
Do not let your property tax be a burden on you. The depreciation of different elements of your property can easily be used to set off those losses against tax deductions that could reduce your total tax outlay. The property tax could be substantially reduced by claiming depreciation on property. A good agency with certified quantity surveyors like Deppro can help prepare the depreciation report and then use it to prepare the correct tax return which will include the maximum entitlements.