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Tax Depreciation
Tax Depreciation
| Tax Depreciation |
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What is Tax Depreciation? As a building ages it is subject to wear and tear, therefore depreciating in value. Archi-QS specialises in maximising the tax depreciation potential for investment properties. It can be claimed by any owner of an income producing property. (Learn More) What Can I Claim? Essentially, there are three components to a depreciation schedule: 1. Capital works depreciation (based on the original construction cost); 2. Depreciation on plant & equipment (where items such as carpet, blinds, ovens, and many more items depreciated at accelerated rates); 3. Renovations and improvements (allows for capital improvements done to the property). Archi-QS Depreciation Reports The report is prepared for a 40 year period but is only presented for 10 years for reasons of 5 yearly updates. It includes both the Diminishing Value Method of Depreciation, which takes into account the short term depreciation rate aiming to attain the maximum return for those investors which hold their investment property for a short period of time only, as well as the Prime Cost Value Method of Depreciation, which similarly takes into account the long term depreciation rate aiming to attain the maximum return for those investors which hold their investment property for a long period of time. Both methods are calculated in pro rata of the first year of ownership based on the settlement date so that the accountant has the exact depreciation deductions for each year. Old properties and Depreciation Property investors are often misinformed in thinking that depreciation is only limited to new properties, when in fact any building irrespective of age will attract some claim for depreciation. Deductions can be claimed on both the building structure and the plant and equipment items contained within it. How do I order a depreciation report? Order forms can be downloaded online (Tax Depreciation Form-Commercial & Tax Depreciation Form-Residential) or emailed to you by contacting our office on (02) 9586 4401. How Long Does It Take To Complete My Report? It takes 7 working days, for projects both residential and commercial property. Our Guarantee Archi-QS pledges that our depreciation deductions will be maximised for the benefit of our clients. If we cannot obtain double our fee worth of deductions in the first full financial year claim, there will be no charge for our services. Samuel Najm(Managing Director) |