Depreciation
What is Depreciation?
Just like you claim wear and tear on a car purchased for income
producing purposes, you can also claim the depreciation of your
investment property against your taxable income. There are two
types of allowances available: depreciation of Plant and Equipment,
and Building Allowance. Plant and Equipment refers to items within
the building like ovens, dishwashers, carpet, light fittings,
blinds etc. Building Allowance refers to construction costs of the
building itself, such as concrete and brickwork. Both these costs
can be offset against your assessable income.
How much will I save?
Each property is different and many varying factors must be
considered when preparing a tax depreciation schedule. Use our
Depreciation Calculator to get an estimate of potential deductions
available to you:
How do the figures indicated on the calulator help me?
The allowances indicated on the calculator result in real dollar
tax savings to you. Depreciation allowances reduce your taxable
income. For example, if your depreciation report specifies a claim
of $10,000 - then your taxable income should be reduced by that
amount.
to
try our RUN's depreciation calculator.
How long will it take to complete my schedule?
Your depreciation schedule will take approximately 2-3 weeks to
complete, as long as your tenant allows us to inspect your property
without delay.
How much will my depreciation schedule cost?
In order to claim any allowance indicated on the calculator, you
will need a specific report for your property.
To get a report specific for your property, simply
The cost of depreciation schedules are quoted individually and
fees are 100% tax deductible.
Is my property too old to claim depreciation?
The simple answer is no. If your residential property was built
after July 1985 you will be able to claim both Building Allowance
and Plant and Equipment. If construction on your property commenced
prior to this date, you can only claim depreciation on Plant and
Equipment (i.e. carpet, blinds, ovens etc.) but it will still be
worthwhile. Please check your property using the Tax Depreciation
Calculator .
My property is renovated. Can I still claim?
Yes. We will need to know how much you spent on renovations.
This is an ATO obligation. If the previous owner completed the
renovations you are STILL entitled to claim depreciation. In either
case, where the cost of renovation is unknown, we are fully
qualified to make that estimation.
If you would like to learn more about this calculator - some of
your questions may be answered here at the FAQ's.
If you would like to learn more about Property Depreciation in
general, please read here.