“A Tax Depreciation Schedule could boost your return by up to $15,000 in one financial year.”
Nathan King
National Director – Advisory, State Government & Projects
P: 0416 082 499
When you choose Acumentis for your property valuation or advice in the Sunshine Coast region, you will benefit from over 35 years of local expertise. Our deep roots in the area extend back to our time as LMW, one of the companies that merged with Taylor Byrne and MVS National to form Acumentis. This rich history has endowed us with an intimate understanding of the Sunshine Coast property market, enabling us to provide you with accurate and insightful property valuations and advice.
When it comes to tax depreciation schedules, our comprehensive understanding of tax laws allows Acumentis to provide detailed reports that outline the depreciation allowances you’re entitled to. Whether you own a residential, commercial, or rural property, our services can help to reduce your tax burden and improve your cash flow. Our commitment to accuracy, timeliness, and customer service has made Acumentis the leading choice for tax depreciation services on the Sunshine Coast.
A tax depreciation schedule is an essential tool for owners of income-generating properties in the Sunshine Coast. It allows them to claim depreciation allowances, accounting for the wear and tear and depreciation of a building and its assets. The deductions are calculated based on the property type, age, and historical construction costs
Deductions can be claimed under two categories:
Whether you’re a seasoned investor or new to the property market, a detailed tax depreciation schedule can help you to strategise your investments, maximise your returns, and plan for the future. Reach out to Acumentis today to learn more about how we can assist with your property needs on the Sunshine Coast.
“A Tax Depreciation Schedule could boost your return by up to $15,000 in one financial year.”
Nathan King
National Director – Advisory, State Government & Projects
P: 0416 082 499
In the vibrant property market of the Sunshine Coast, tax depreciation schedules serve as a strategic tool for owners of income-generating properties. It’s not just about claiming depreciation allowances, but also about gaining a deeper understanding of your investment. It allows you to account for the ageing and depreciation of your property over time, providing a clear roadmap of your property’s value.
Acumentis, and our partners have a team of qualified Quantity Surveyors on the Sunshine Coast to inspect your investment properties and provide detailed tax depreciation reports. Each member is fully compliant with the Australian Taxation Office and government legislation. Working with the experts at Acumentis offers you:
By leveraging a tax depreciation schedule, property owners in the Sunshine Coast can maximise their returns on investment properties. To maximise your depreciable deductions, get in touch with your local tax depreciation specialist below. Call us on 1300 882 401 or click below for an instant quote. With a nationwide presence, including offices in Sunshine Coast, Brisbane, Gold Coast, Sydney, Melbourne, Canberra, Adelaide and Perth, our property professionals are always on hand to offer insightful advice.
Tax Depreciation
The Australian Taxation Office (ATO) allows investment property owners to claim deductions on the fair wear and tear on an investment property and its fittings. Tax depreciation is essentially a non-cash deduction. You don’t necessarily have to directly incur the expense to be able to claim tax deductions, you can inherit deductions upon acquisition of the property (different rules apply for residential properties purchased post 9 May 2017). Tax depreciation is split into two categories; Division 43 Capital Works Allowances (the building itself) and Division 40 Plant and Equipment (eg. carpets, blinds, A/C, ceiling fans etc.)
Tax Depreciation helps;
Division 43 Capital Works Allowances (the building itself) – bricks, roof, framing, windows, doors, plaster, kitchen cabinetry.
Division 40 Plant and Equipment (carpets, blinds, A/C, ceiling fans, kitchen appliances etc).
In residential division 40 is only allowed on new properties, or assets purchased by the current owner as new if the property settled post 9 May 2017. You are not allowed to claim a division 40 deduction for second-hand assets when the property settled or became income producing post 9 May 2017.
Anyone who owns an income producing property. Tax depreciation is not available on your home/primary place of residence (PPOR).
Depreciation tax deductions are available to residential property investors whose investment property was built after 15 September 1987, commercial properties when built after 20 July 1982 and any refurbishments/renovations/improvements from 27 February 1992. Owners do not have to know when these works were undertaken -- this is researched by the tax depreciation provider who is qualified to estimate construction costs and asset values. Plant and equipment depreciation is also available on all new buildings and all existing properties when purchased prior to 10 May 2017. In summary, 99.9% of investment properties will be entitled to some form of depreciation deduction.
Yes, the structure of an investment property has an effective life of 40 years and tax depreciation can be claimed on an investment property that was built post-September 1987. Another tip that could save investors thousands is that their Accountant can help claim tax depreciation retrospectively, amending up to the past two financial year tax returns and making the most of depreciation deductions that may have been lost through not claiming. It is completely legitimate and the ATO actually encourages people to do this.
Yes, and this is where Quantity Surveyors can add serious value with a rental property depreciation schedule. It does not matter if the works were undertaken by a previous owner. When an investment property is purchased the property investor has also purchased the entitlement to make a depreciation claim on all of the property’s improvements.
Most houses 10+ years old will have had works done. The most typical being:
On a 10-30 year old property there is $65,000 right there which could be detailed in a tax depreciation schedule.
If a client is about to renovate an investment property it may be worth recommending a pre-renovation inspection. This inspection allows a Quantity Surveyor to identify what assets or capital works are going to be demolished or thrown out. Value can be assigned to these assets and they can be written off as an immediate tax deduction. A pre-renovation inspection and ‘scrapping report’ can save thousands which can offset the loss made through the renovation period.
Quantity Surveyors are recognised by the Australian Taxation Office (ATO) as the most suitably qualified professional to estimate the depreciable expenditure spent on the property prior to its purchase, as well as the value of the fittings and equipment within the property. In accordance with ATO Tax Ruling 97/25, if a residential investment property, for example, was constructed after September 1987 and/or construction costs are unknown, a registered and qualified Quantity Surveyor must be engaged to produce a commercial or residential tax depreciation schedule. Unfortunately, an Accountant cannot do this for investors.
Our investment property depreciation schedules start from $600 + GST.
We’ll provide you with one tax depreciation schedule that lasts up to 40 years of claim and the fee is 100% tax-deductible. We can also undertake a retrospective tax depreciation schedule if you haven’t been claiming deductions so that you don’t miss the tax benefits for your commercial or residential investment properties.
To find out how much a depreciation schedule costs for your property, add the details using the link below to receive your obligation-free quote.
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