Tax depreciation schedules
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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)
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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 total annual deduction for depreciation |
| Modern residential house |
$4,000 to $8,000 pa |
| Modern residential unit |
$4,000 to $10,000 pa |
| Older residential house or unit |
$1,000 to $4,000 pa |
| 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: |
Many property investors are missing out on thousands of dollars of depreciation benefits each year. |
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 five 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 schedules with coverage in all major cities and most regional and remote locations.