Property investors can’t afford to neglect to have a Tax Depreciation Schedule for their property investment. We all pay tax, some more than others. Every passing year without one is another year of potential forfeited claims/and possible returns for the property investor (mentioned elsewhere; can add up to tens of thousands of dollars. Over the life of the property – hundreds of thousands of dollars!).
Every passing year without one is another year of potential forfeited claims/and possible returns for the property investor
For general awareness purposes, Tax Depreciation Schedules are NOT just applicable to new properties; OLD properties can benefit too. Renovations/extensions and improvements may all be deductible and can add another 40 years of depreciation! Which is a great outcome, as it is very common to have a property investment that has previously been or has a scheduled renovation/extension or a planned upgrade.
For lack of a better expression, savvy property investors know about the benefits of a depreciation schedule and make sure they are claiming all their property related tax claims. Yes, accountants help with some aspects, but rarely do they or can they assist with tax depreciation schedules.
Australian Tax Office, Tax Ruling (TR 97/25), mentions a Quantity Surveyor as ‘appropriately qualified’ to undertake estimates and costing for Tax Depreciation Schedules. Whereas, “Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate” for Tax Depreciation Schedule work.
Refer to our Tax Depreciation FAQ here for more commonly asked tax depreciation questions and answers.
Quantity Surveyors can indeed assist the property investors, but as the ATO suggests, not to the satisfactory requirement when it comes to depreciation work (going further, not legally either).
Good news, individuals can request a re-adjustment on their tax returns (with the ATO) in the previous 2 years claims to take into account our Tax Depreciation Schedule reports (if none have previously been claimed). In some cases you may be entitled to more- we can show you how.
A once-off-fee is what BWK Group offer, however, we advise our clients to make sure their Tax Depreciation Schedule is always ‘current’and to ask the question. A revaluation check should be factored in at regular intervals in order to make sure all available allowances and deductions for the property investment are being maximised.
You will find other examples on our website of the results we have achieved (refer to our depreciation case studies here), further information about tax depreciation schedules/depreciation reports, but for some, it is important to also know that the investment for a Tax Depreciation Schedule is also 100% tax deductible.
BWK Group are ready to assist. We can also review existing depreciation reports (also referred to as Quantity Surveyor Report) to help you establish whether you may need an ‘updated’ report, and yes we have informed clients that their depreciation report (completed by ‘others’) appears adequate (not to take responsibility for ‘other’ provider’s work, but offering our feedback on face-value).
Return to the home page