Tax Depreciation Schedules

If you own an investment property – or have recently purchased one – then you’re going to want to further invest in a tax depreciation schedule.

Bank Prefunding Report

Optimise your tax offset

The whole point of an investment property is that it brings you another flow of revenue – and there are several ways you can make your investment property work for you other than the rental income. One of those options directly relates to the depreciation of your home’s value. What if we told you that in the first year alone, you could claim between 2% – 3% of your investment property’s purchase price from its depreciation value?

It’s true, but to do it, you’ll need the help of a tax depreciation schedule. A tax depreciation schedule is a meticulous and complete report that outlines your property’s value and how it will depreciate over the next 40 years. You can then offset the depreciation against your yearly tax and claim back the full amount you deserve.

A schedule that lasts

Our expertly composed tax depreciation schedules are devised to last 40 years – ensuring ease of use when tax time comes. Your accountant simply needs to punch in the numbers from the schedule. This will inadvertently save you extra time and money with your accountant as well.

The details that matter

When it comes to tax depreciation schedules, the assets are divided into two categories:

  • Capital works (Division 43) – which is any cost relating to the purchase or construction of the property. This includes renovations and extensions – things like new fencing, bathroom renovations, decking or even a pool.
  • Plant and equipment assets (Division 40) – this covers any item, furniture or appliance that populates the property so-to-speak. Examples include dishwashers, couches, home security systems or lighting.

Our experienced quantity surveyors will also calculate the depreciation value of your assets using both the prime cost method and the diminishing value method. The prime-cost method assumes that the asset diminishes in value an equal amount over the years whereas the diminishing value method assumes the asset’s value will diminish more-so in the earlier years.

Within the schedule, you’ll also find the assets divided into tables showing high-value assets ($1000+) and low-value assets (under $1000) – each of which will have been calculated with the prime-cost and diminishing value methods.

Premium tax depreciation schedules

Tax depreciation schedules are an absolute must for investment property owners. They allow you to really take full advantage of your property’s cash flow and earn the full sum of what you should be getting back. With the practised experts from Section 94 producing such reports, you can enjoy the full benefits of your investment property – and what’s more, our fee is 100% tax-deductible.