A rookie mistake of a new investor - The depreciation schedule

August 18, 2016
Chantelle Rangel

A Depreciation schedule - Saves investors thousands of tax dollars
Thousands of tax dollars go unclaimed every year because investors are not aware of the ability to claim the depreciation on their property and assets within.
What is a depreciation schedule?
If your property is generating you income, you will be eligible for significant tax deductions. One of which is depreciation of assets within the building as well as the building itself. A depreciation schedule is a report provided to you by an accredited surveyor outlining the total amount you are eligible to claim for depreciation against your income from the property.
What can be claimed?
Your property and it's contents will depreciate, and you are eligible to claim for these items. You are even eligible to claim previous owners renovations and fixtures. (your surveyor can estimate this) Depreciation is separated into two categories:
1.Plant and equipment - things like AC, ovens, Dishwashers, security systems etc, and
2. Capital Works - construction costs of the building itself (bricks and motar etc)
How does it save you money?
Once you identify the eligible amount you can claim, from your depreciation schedule (see below). This will be the amount you can claim to reduce your taxable income.
How do you obtain this report and what's entailed?
  • The only place you should obtain your report is from a qualified quantity surveyor who is also a member of the AIQS. 
  • Charges vary depending on the size, age, type, location of property and numerous other factors. We just paid $500 for a survey for a 4 bedroom house in the inner west, however we have seen options for money back guarantee if your eligible claim is lower than the cost of the report. Shop around!
  • The surveyor is required to visit the site and will take photos of his investigation
Owned your property for a while? it's never to late to check if you are eligible
It's never too late to obtain a report and check as you can generally claim up to 40 years from construction date.
Go forth and claim those taxable dollars 
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