A Tax Depreciation Report allows owners of investment properties to claim their loss in value for the natural wear and tear of the property.
This report lists depreciable assets related to owning an investment property including the building itself. It may be used to enable property investors to determine the deductible portion of the original costs of the plant, equipment, and capital works on their investment property in each financial year over forty (40) years of ownership.
We will explain all the details of how you can claim your taxes and what is eligible to claim.
What assets are eligible for tax depreciation?
The eligible assets fall into two divisions:
- Capital Works: construction costs of the building itself, such as concrete, brickwork, foundations, etc.
- Plan and Equipment: items within the building like ovens, air conditioning, carpets, blinds, etc.
Can I claim deductions if I had renovations on my property?
Property investors who have carried out substantial renovations on their property can still claim tax depreciation as usual. Substantial renovations include structural and non-structural additions, changes, or upgrades where all or most of the building has been substantially removed or replaced.
What are the methods used to claim depreciation?
There are two methods for depreciating assets:
- Prime cost
- Diminishing value
The prime cost method depreciates assets equally over their effective life, while the diminishing value, on the other hand, assumes the value of the depreciating asset declines in value each year, resulting in higher deductions in the first few years.
Our reports include both methods so that you can decide on the most beneficial for you with your accountant.
Why should I choose a Quantity Surveyor from Archi-QS to do my report with?
It is important that you seek correct guidance in relation to discovering what depreciation can be claimed for your residential investment property.
Tax Depreciation Schedules completed by Archi-QS are custom to suit each individual situation and are aligned with the current legislation. We ensure that we maximize the claims available to you for a competitive and 100% tax deductible fee.
Contact us for further information and special prices.