Tax depreciation schedules

Herron Todd White provides specialist advice to property investors, building owners, real estate agents and property managers in respect of depreciation allowances. Tax depreciation schedules are an essential tool for all property investors.

Depreciation is an important part of maximising your investment returns from an income generating property. The Income Tax Assessment Act 1997 allows owners of investment properties to claim annual deductions for depreciation on:

The main building and structural improvements
Plant and equipment items (light fittings, floor coverings, kitchen appliances and so on)

The amount of depreciation for these items depends on their size, age and quality however, in many cases total deductions are in the order of:

Property Type	Indicative 10 year deduction for depreciation
Modern residential house	Up to $120,000
Modern residential unit	Up to $150,000
Older residential house or unit	Up to $40,000
Commercial, retail, industrial or rural property	Varies upon size and age

As indicated above even older properties are eligible to claim a worthwhile depreciation allowance.

To assess the annual depreciation allowances for your investment property you will require a tax depreciation schedule prepared by a Quantity Surveyor. A tax depreciation schedule involves:

A full inspection of your property to identify all depreciable items
An historical construction cost estimate of the main building
Valuation of all plant and equipment items
Preparation of a report which is accepted by the ATO and summarises the depreciation allowances for the future years

For Real Estate Agents and Property Managers

For your rent roll:

Are your landlords receiving the maximum depreciation benefits each year?

Do your landlords require an updated Replacement Cost Estimate of their investment property for insurance purposes?

For Accountants and Financial Planners

For your investor clients:

Are your clients receiving the maximum depreciation benefits each year?

Do your clients require an updated Replacement Cost Estimate of their investment property for insurance purposes?

Do your clients require an independent valuation of their investment property for capital gains tax purposes, financial reporting or asset purposes?

An added bonus of using Herron Todd White is that we can assist you in claiming previously unclaimed deductions from tax returns dating back as far as two (2) years. To find out more about unclaimed deductions simply email us at htwa@htw.com.au.

Herron Todd White are specialists in the area of tax depreciation schedules, employing Quantity Surveyors who are focused on the relevant tax laws and latest rulings associated with depreciation. We offer unequaled coverage for Tax Depreciation services and Replacement Cost Estimates as indicated below:

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