Tax Depreciation Schedule
Do you own a residential rental property or holiday home?
If the answer is yes, you may be interested to know that you’re entitled to tax deductions, regardless of the age of the property. A tax depreciation schedule is a document detailing how much depreciation you can claim on your investment on an annual basis from when it was first available to rent.
At The Home Inspection Hub, we manage the process for you. After gathering some information from you about the property, we will liaise directly with the property manager on your behalf, arranging a time for an inspection. Once the data is collected, a qualified Quantity Surveyor who specialises in depreciation schedules will prepare your report. The following process will apply:
Why is a tax depreciation schedule with The Hub so important?
A registered Quantity Surveyor is qualified to estimate the historical construction cost of a building and process the claim to the ATO standard. It’s important to note that an Accountant is not suitably qualified to estimate construction or renovation costs.
Generally, a tax depreciation schedule will cover a full 40 year analysis of your tax entitlements. However, if you invest in a schedule and then renovate the property, you’ll need to obtain another schedule in order to reflect the changes with the renovation.
This is a common question that we get asked by clients. Unfortunately, it’s very difficult to estimate depreciation without viewing the property. Our best piece of advice is to invest in a tax depreciation schedule close to your settlement date. If the property is newly built, the greater the depreciation will be, mainly in the first ten years from settlement date. However, it’s still worthwhile investing in a depreciation schedule for an older property as well.
If you renting out your own home, you are able to claim depreciation from the date the property was made available for rent.
If you own a holiday rental, you’re entitled to claim depreciation. This applies to the property and furniture, as well as linen, videos, electrical equipment, games, books and kitchen cutlery located within the home.