Why do I need a Depreciation Schedule?
A depreciation schedule allows you to ensure you claim the full amount of tax back on your rental or investment property when completing your tax return. Engaging a company such as DEPPRO who’s schedules are ATO compliant you can not only claim guaranteed entitlements from your tax return you can ensure you maximise your entitlements to ensure the biggest return possible from your investment property.
What is a Depreciation Schedule?
A depreciation schedule is in report that lists the depreciable assets related to owning an investment property including the building itself. It tell you or your accountant what tax to claim when putting in your tax return to ensure you claim the correct amount of tax back. A depreciation schedule can be prepared by a dedicated tax depreciation company who use qualified quantity surveyors to complete the report.
By using a company that works directly with ATO you can ensure all items are properly listed in the schedule to make it simple and concise for your tax return. The great thing about a tax depreciation schedule is the costs in getting it completed is tax refundable, this makes it even more easy to see why you would use a professional depreciation schedule.
What is Listed in a Depreciation Schedule?
Your depreciation specialist will asses the property assets and items and list them in sections in the report to make it easy to read and understand for your accountant. The are two defined categories:
- Plant and Equipment depreciation – this covers assets associated with your investment property that have a finite lifetime and fall in value over time as a result of age and wear and tear. It includes fittings such as carpets, lighting, appliances (stove, fridge), furniture, security systems, air conditioning units and even garbage bins which are provided as part of the property.
- Capital Works depreciation – this covers aspects of the building, including constructions, extensions, alterations and improvements of a structural nature. It includes work undertaken such as extensions for a garage or patio, kitchen renovations, bathroom makeovers or the addition of a gazebo, carport, fence or sealed driveway.
You need to include all items to get that the full return on your tax this where a quantity surveyor comes in, they can visit the property to ensure you are not missing any items from the depreciation report.
Tax Depreciation Schedule or a Tax Depreciation Report?
A tax depreciation schedule is in effect a report that is completed and returned to you to use for your tax return, the reason it is more commonly known as a depreciation schedule is due the fact the items are listed as in a schedule format. A depreciation report is the other name used when describing what you receive, in effect the are both the same thing.
By ordering a tax depreciation report you will receive the schedule and the listed items such as carpets, white goods etc. This depreciation report is then used to calculate how much tax you can claim back.
How can I get a Tax Depreciation Schedule?
You can get a tax depreciation schedule by requesting a report or contacting us for more information. You can also get an estimate prior to your report to find out how much tax you could get.