There’s experts out there, like Deppro, who efficiently handle tax depreciation so their clients can get the best possible return. Seasoned property investors know about tax depreciation and how to claim deductions every year. This article is for the first-time investors wanting to get in the market, but not quite able to wrap their head around depreciation.
It’s a claimable expense
Tax depreciation is deductible from your income, giving you a greater tax return.
You need a depreciation schedule
This is absolutely necessary so investors and business owners can claim the maximum amount over time. Depreciation schedules begin from the settlement date and estimate the value of taxable items over their useful lifetime.
Getting a depreciation schedule takes the guesswork out of evaluating items in your property as the years pass. Quantity assessors, like those who work for Deppro, will do an inspection. The depreciation company uses these to write a report and a depreciation schedule. These are delivered to the client within the month. This often overlooked information helps investors significantly boost their returns.
You can buy more properties
The money earned back from tax depreciation lessens the debt investors take on when they buy property. It’s common for them to use the extra funds to expand their portfolio. Once they do, they repeat the process of getting a depreciation assessment.
The report isn’t an annual thing
The quantity surveyor will only need to visit the property once. They’ll take pictures and make notes before heading back to the office and drawing up the report, outlining the values of the items they see. If you do renovations on the home, though, you will need to update this report for an accurate schedule. You’ll get in trouble with the ATO if you make a claim with false information.
The depreciation schedule must come from a registered tax agent so that it complies with guidelines from the ATO. Deppro’s quantity surveyors are educated, accredited, and take pride in providing accurate reports.
https://deppro.com.au/wp-content/uploads/2017/07/deppro-resize-4.jpg126190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2017-07-14 00:01:462017-07-06 00:24:00What everybody ought to know about tax depreciation
Having a depreciation schedule isn’t anyone’s idea of a ‘must-have accessory’ but it pays off in more ways than one. Seasoned investors and business owners with several properties under their belts know well the bragging rights they’re afforded when they’ve got the depreciation schedule in their hands.
It’s less work
Tax time is the bane of most people’s existence . Organising account information, making sure expenses are correct and the like is a pain if you’re not organised. When you own investment properties, or brick-and-mortar stores, the amount of work increases substantially.
This is where the depreciation report comes in. After the quantity surveyor does their walk through and the company mails you the report, a large bulk of the tax reporting for those properties is complete. You don’t have to triple-check bills or receipts for a long time unless you do renovations.
It lasts for a LONG time
Ordering a depreciation report isn’t an annual task. It’s valid for the lifetime of the property. Companies like Deppro create reports that last forty years, so you’re set for life, or at least as long as you have the homes/shops in your portfolio.
This means, though, you must act quickly. As soon as you settle the deal with the real estate agent, get the depreciation experts in to assess. They prefer to see everything in the condition you bought it to make an accurate report. If the previous owners made renovations, then that’s a bonus as you’re eligible to claim their work in the report!
More (money) for you
The biggest bragging right of all? You’re paying less tax! Because you got the depreciation report done and passed off to your accountant in record time, there’s more money flowing back to you come tax time.
A depreciation report isn’t glamorous, but its benefits are worth their weight in the size of your tax return. You can feel a little smug having less work on your plate organising expenses. Your accountant has the report, and you have the time to run your business.
https://deppro.com.au/wp-content/uploads/2017/07/deppro-resize-1.jpg190190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2017-07-07 00:00:512017-07-06 00:07:01How your depreciation schedule give you bragging rights
Property depreciation is a crucial part of managing your taxes and rental property. If you don’t do it, you’re missing out on cash – lots of it. So how does one get on top of their tax depreciation?
First thing’s first: get an expert. Companies like Deppro prepare depreciation reports/schedules that are ATO compliant. Their staff evaluate items for their lifetime value and prepare the report, detailing how they will decrease in value over time. Things in and around the home fall into two categories: plant and equipment, or capital works
Second, get the expert to come as soon as you settle with the real estate agent. Quantity surveyors work best when they see the items in the condition you bought them. If the previous owner has done renovations, you can claim deductions on their work! The ATO will only accept a property depreciation report created by a quantity surveyor, not an accountant. This is because they’re the most qualified to do it. You wouldn’t expect someone who estimates material costs for a living to write your tax return.
That said, the third step is to get your accountant on your side. They help you with your tax return every year, making sure you’re not missing anything you’re eligible to claim. The accountant will treat the property and depreciable items as another asset to claim. They’ll need the property depreciation schedule to properly write out the returns over the years.
Another helpful way to get on top of property depreciation is to make sure you’re buying a property that will pay for itself over the years. A house or apartment that’s recently renovated and meets the criteria to generate high rental income is ideal.
Property depreciation is difficult to wrap your head around. To get on top of it, it’s absolutely necessary to call in experts like Deppro not long after your settlement. When you’ve got the depreciation schedule in hand, you’re set for life, or at least the next forty years.
https://deppro.com.au/wp-content/uploads/2017/07/deppro-resize-2.jpg124190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2017-07-05 00:01:092017-07-06 00:04:55How to get on top of property depreciation
https://deppro.com.au/wp-content/uploads/2017/03/moneybig_0.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2015-07-14 10:02:002017-05-25 04:29:43Record slow down in rental growth highlights needs for investors to boost cashflow through claiming their depreciation benefits.
https://deppro.com.au/wp-content/uploads/2017/03/istock_000002540525_full.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2015-06-23 10:58:162017-05-25 04:29:28How Astute First Home Buyers can use Tax Depreciation Benefits to more Easily Purchase their First Property
https://deppro.com.au/wp-content/uploads/2017/03/housing-shortfall_0.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2015-06-16 11:09:242017-05-25 04:29:28Why Property Investors need to focus on the ‘Hidden Taxes’ of Owning Property
https://deppro.com.au/wp-content/uploads/2017/03/comprehensive_report_0_0.png127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2015-06-02 11:22:142017-05-25 04:41:21What Is A Tax Depreciation Schedule?
https://deppro.com.au/wp-content/uploads/2017/03/istock_000003398801_double.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2015-05-18 11:37:012017-05-25 04:41:22Federal Budget Highlights surge in Personal tax Collection
https://deppro.com.au/wp-content/uploads/2017/03/reduce_ato_tax_on_investment_property.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2014-09-11 13:27:132017-05-25 04:31:35Importance Of Claiming Tax Depreciation Benefits Highlighted As Governments Collect Over $1 Billion In Taxes Every Day
https://deppro.com.au/wp-content/uploads/2017/03/investment_property.jpg127190adminhttps://deppro.com.au/wp-content/uploads/2017/04/logo-deppro-final-300x140.pngadmin2014-09-02 13:32:532017-05-25 04:31:35Property Investors Should Claim Their Full Tax Depreciation Benefits With $10 Billion Now Being Spent Monthly On Investment Housing