A blog by Paul Bennion.
Property owners who have an income producing property are entitled to claim depreciation to increase their cash flow. As depreciation is a non-cash deduction the vast majority of property investors are not aware of the significant tax benefits associated with obtaining a Tax Depreciation Schedule.
What is Tax Depreciation?
Depreciation on a residential or commercial investment property is a non-cash deduction, meaning investors do not receive money back, instead claiming depreciation on an investment property will lower the investor’s assessable income. This may result in being a placed in a lower tax bracket.
Why it is vital to choose a Quantity Surveyor
Property Investors should engage the services of a Quantity Surveyor to ensure the maximum depreciation deductions are claimed. Quantity Surveyors possess expert knowledge regarding eligible assets that are included in a Tax Depreciation Schedule, to guarantee property investors maximise returns.
Tax Ruling 97/25 classifies Quantity Surveyors as one of the select professionals as possessing the required construction costing skills used to estimate building costs for depreciation purposes. Quantity Surveyors who are members of the Australian Institute of Quantity Surveyors (AIQS) have access to the latest information relating to Tax Depreciation.
Ensure your Tax Depreciation Schedule is valid for the entire life of your investment property
A Deppro Tax Depreciation Schedule is structured for accountants to adjust previous years’ tax returns to redeem missed deductions. All Tax Depreciation Schedule commence from the settlement date and the first year will be a pro-rata depending on when the settlement date occurred.
Depreciation can be claimed on all properties regardless of age. A Tax Depreciation Schedule will help increase cash flow for investors. All property investors should consult a Tax Depreciation specialist to discuss their property scenario and depreciation potential.
Why property investors should obtain a Deppro Tax Depreciation Schedule
- ATO Compliant – To claim maximum tax benefits on an investment property the Australian Taxation Office (ATO) requires property investors to complete a fully compliant tax depreciation report. Deppro staff are industry-qualified & trained in-house to provide honest, reliable, accurate & ATO compliant reports in accordance with the latest government rulings & interpretations.
- Physical Inspections – Deppro conducts physical inspections of all properties under evaluation. Deppro insists on walk through property assessments by our own in-house staff, who are qualified inspectors. Our staff possess the expertise & knowledge of which items in rental properties are depreciable & how savings can be legitimately achieved by investors.
- Double our Fee Guarantee – If clients do not receive double the fee in deductions in the first full financial year the report will be provided at no cost.
- Full audit trail – A full audit trail is provided to every client, plus support information on request free of charge. Deppro also assist with ATO audits.
- Innovative Technology – Deppro incorporates innovative technology to provide a timely & efficient process to assist property investors maximize returns.
- One Report for the life of the property – A Tax Depreciation Schedule supplied by Deppro is valid for the entire life of the property (40 years). Investors do not need to obtain another tax depreciation schedule, Deppro will amend any schedules to incorporate renovations conducted on an investment property.
- Registered Tax Agent – Deppro is a registered Tax Agent. Tax Agent Number 39644008
- Affordable – A comprehensive Tax Depreciation Schedule can be provided for a one off fee of less than $600 with this fee being 100% tax deductible.
- Member of AIQS – Deppro is a proud member of the AIQS, a professional standard body ensuring practicing Quantity Surveyors maintain the highest standards of professional excellence. AIQS membership provides the highest level of peer recognition within the industry
