No one loves paying their taxes. That’s why you shouldn’t let go of an opportunity to legally reduce your tax. The guidelines regarding property tax depreciation allow you to do exactly that. If you go through the provisions of ATO property depreciation you will understand exactly how you can reduce your tax burden, but in this article, you can read that in very simple terms of 5 easy steps.
1. Understanding Your Assets
You need to demarcate each and every asset on your rental or investment property into the two broad categories of capital works and plant and equipment.
2. Getting an Expert Opinion
If you are not sure about how the distinction is to be made, you can get a dependable company like deppro to review your property and list down all the assets correctly. This is done by one of their certified, professional quantity surveyors.
3. Preparing Property Tax Depreciation Schedule
Based on the property review done completed by a qualified quantity surveyor, a complete property tax depreciation schedule would be prepared to detail the exact amounts of depreciation each element of your property is subject to. The company whom you have employed would prepare the correct details of each year’s depreciation.
4. Completing Your Tax Return
Once your depreciation schedule is ready, you need to go through the ATO regulations to understand what tax allowance each depreciation amount attracts. Based on that, your tax return will need to be reworked and the additional allowances factored in.
5. Check Your Refunds
If you pay advance tax, then the tax deductions your depreciation will allow you, will be granted to you as a refund. Make sure that this refund is exactly the same as the calculations you had calculated earlier.