Depreciation schedules - a must for investors

June 12, 2015
Ashley Arrowsmith

A depreciation schedule is a document prepared by a specialist Quantity Surveying firm that helps to ensure that you are maximising the cash return from your investment property.


As a building gets older, items wear out – they depreciate. The Australian Taxation Office (ATO) allows property owners to claim this depreciation as a deduction. This can be claimed by any property owner who obtains income from their property.


To maximise taxation returns, owners of investment properties should organise a depreciation schedule upon settlement. A tax depreciation schedule is a document which helps the property owners’ accountant identify exactly how much depreciation can be claimed.


The property depreciation schedule will ensure maximum depreciable items are identified and also account for allowable low-cost and low-value items.  


Claiming all the depreciation property investors are entitled to on an investment property can make a big difference to their cash flow.  Of all the tax deductions available to property investors, depreciation is most often missed as investors do not need to spend money for it to be claimed. It is already there to be claimed on the building structure and on existing fittings and fixtures.


The property depreciation schedule is valid for the life of the property or until capital improvements are undertaken and the schedule is generally returned within 5 days from the inspection.


If you are looking for assistance with an investment loan or a depreciation schedule, please call Ashley on 0425 826 967 or 9432-2121 

Posted in: Property investment

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