A depreciation report is a depreciation schedule that is prepared for your property by a qualified quantity surveyor. You can claim depreciation on your investment property against your taxable income to ensure you are maximising the cash return from your investment property. A quantity surveyor will visit your property, inspect and prepare a report for your accountant.
At Fortis Accounting Partners, we can help you begin the process by helping you organise your depreciation report and finalising your tax once the reported is completed. You could be saving thousands in tax by getting a depreciation report, so why not start today?
Who can get a depreciation report?
If your property was built before 1985, you can’t claim depreciation. Any properties built after 1985 can be depreciated for taxation purposes and have a depreciation report carried out. You can also still claim depreciation if your property has been renovated. The report must be done by a quantity surveyor who is aligned professionally with the ATO.
Why would I get a depreciation report?
The simplest reason why you would get a depreciation report is because it will effectively help you pay less tax. The amount of depreciation the report says you can claim reduces your taxable income. You are only required to get one report which will last the lifetime of your property. You can get amendments to your report when you see fit, for example, if you make a big change to your property.
What depreciation is available?
If you are an investment property holder, there are two types of depreciation available to you that can be offset against your assessable income:
1. Plant and equipment – This refers to items within the building that may depreciate over time including furniture, dishwashers, carpet, ovens etc.
2. Capital works on the building – This refers to the construction costs of the building itself. This can include concreting, tiling, building and renovating expenses.
When to get a depreciation report?
There are a few occasions when it is very appropriate to get a depreciation report, these include:
- When you first purchase a property
- If you want to demolish the property
- If the property has had a huge renovation
- If you haven’t already got one and want to pay less tax
Where can I get a depreciation report?
Please contact us at Fortis Accounting Partners and we can organise a depreciation report for you.
Once you have your report completed, Fortis Accounting Partners will take care of the rest of the accounting process for you and help you save on tax. If you have any questions on depreciation reports or would like to get yours underway, please feel free to contact one of our friendly team members.
