Whilst the ATO prescribes standard rates for effective lives of construction and plant and equipment items, the varied methodologies used by depreciation service providers can result in thousands of dollars of difference in the final schedule outcome. A quality depreciation schedule improves the cash-flow position of a property, sometimes substantially, and can impact on the overall investment strategy adopted by investors.
Maximising your depreciation deductions gives you the opportunity to reduce debt, reinvest or simply manage monthly expenses more easily.
You will find everything you need to know about depreciation on this site, or please don't hesitate to contact our office on 1300 922 220.
When comparing depreciation providers use the features of our report below to ensure you are purchasing a quality report and getting best bang for your buck. Remember that the cost of a depreciation schedule is also 100% tax deductible!
40 year forecasts
Our reports forecast a full 40 years of deductions making it a once-off purchase for the life of the investment.
Diminishing value and prime cost
Both methods of depreciation are reported allowing the investor to tailor their strategy to their personal circumstances.
Low cost and low value pooling
We utilise both methods so investors can claim aggressively in the earlier years of the investment when costs of holding are typically higher.
For older properties our team will identify any works completed over time and ensure construction, asset values and effective lives are calculated from the most recent completion or install dates maximising all potential deductions.
Inclusion of preliminary and consultant fees
Our asset values include apportionment of preliminary and consultant fees to ensure maximum, legitimate values are attributed to all assets.
Disposal of assets – “scrapping”
Where applicable, scrapping is included as a standard in our depreciation schedules to ensure investor claims for renovations are maximised. Scrapped items are valued and written at 100% in the year of disposal.
Full estimation of construction and asset costs
Where full costs are not available our team are qualified to estimate the full costs.
Lifetime of free updates
We will update reports free of charge when investors replace/install new assets and provide evidence of the costs of those assets.
If you own an investment property, the best way to ensure your depreciation deductions have been maximised is to use a depreciation schedule prepared by Capital Claims Tax Depreciation. For an estimate of deductions you may be entitled to, or to have your current depreciation schedule reviewed free of charge, please don't hesitate to get in touch.
Mark is an expert quantity surveyor, business owner, public speaker and property developer. With 20+ years experience in the construction and quantity surveying industry Mark’s specialist expertise have been sought in consultant capacity by professional bodies such as the National Institute of Accountants and the National Tax and Accountants Association, and he has presented at various property and tax seminars and expos nationwide. Mark holds a Bachelor of Construction Management from the University of Newcastle, is an affiliate member of the Australian Institute of Quantity Surveyors and a Registered Tax Agent.View all posts by Mark Wilkins