C&G's Guide to Depreciation Schedules
A Tax Depreciation Schedule is a report which outlines the depreciation allowances that you, as an investor, are entitled to. A Depreciation Schedule will give you a year-on-year figure that you can claim, which will help you to pay less tax and can save you thousands of dollars on your tax return. Sounds good, right? Whether you own a residential investment property or commercial building, your schedule provides you with any available tax depreciation deductions. In this C&G Blog, we break down how a Depreciation Schedule works and why you need one
It has a lifetime guarantee
Unlike paying your accountant once a year, once you’ve paid for your Depreciation Schedule you’ll have it for life. Plus, the fee is 100% tax-deductible. However, if you make significant changes to your property, you may need to update your schedule.
It will help you make the most of your tax return
Some property owners have saved up to $9000 on their tax returns in their first year of having a Depreciation Schedule. Your account will be able to use your depreciation claim to ensure that your investment property is maximized every year. Simply provide your accountant with your schedule to start claiming maximum deductions.
You can claim back tax on your previous tax returns
Your accountant can amend your previous tax returns using your schedule. Your Depreciation Schedule starts from the first year of the lease under your ownership.
Is my property too old to claim tax depreciation?
It is a common myth that older properties will attract no depreciation claim. However, both new and old properties will hold some depreciation benefits.
A depreciation schedule is the best way to ensure the biggest tax refund possible. A Tax Depreciation Schedule covers all deductions available over the lifetime of a property.
You can use your Depreciation Schedule to claim on renovations completed by a previous owner
Renovations done prior to buying a property are still eligible to be claimed for depreciation. Depreciation is based on the age of the property and the age of the fixtures and fitting. If the property has been updated over time, this will be depreciated accordingly.
BMT Tax Depreciation is a quantity surveying firm specialising in tax depreciation schedules for residential investment properties and commercial buildings.