My property has been refurbished can I depreciate these costs?
I have been told my property is too old to depreciate
In addition to this, your property may have undergone refurbishment works more recently. It will also attract both building allowances and plant and equipment depreciation. Therefore, it is worthwhile to talk to a qualified Quantity Surveyor before you decide the property is too old for depreciation deductions.
How do you estimate the costs for the depreciation schedule
Do I need a site inspection?
When will my report be issued?
Will the new Government Legislation affect me? I Bought My Property After 9th May 2017?
The Government made some changes affecting Division 40 (Plant and Equipment) assets on properties acquired after the 9th May 2017 7:30 pm AEST which were classified as second hand.
Koste still includes Division 40 assets in your report, as you can still claim the deduction as a capital loss. It is equal to the difference between an asset’s original cost/value and its termination value. In the other words, it may be offset against any future capital gain. Please note that the new legislation does not affect new assets purchased for the second-hand property. Subsequently, new assets will be deducted in the usual way and shown in your report.
The Government changes do not restrict the ability of an investor to claim Division 43 building write-off deductions for a residential rental property acquired after 7.30 pm on 9 May 2017. Depreciation claims in respect of commercial properties and properties used in the course of carrying on a business will also not be affected by the recent depreciation changes.
Any questions of further details can be sought by calling a member of our technical team on 1300 669 400 or contact us via our chatbot.
Which package should I choose?
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What is the difference of a depreciation report and a valuation report?
Is it worth to have a depreciation report if the property is more than 10 year’s old?
Is it worth to have a depreciation report if I purchased a property after 9 May 2017?
What is the difference between Division 43 - Capital works and Division 40 - Capital allowances?
I just changed my main occupancy to an investment property, how will the depreciation be affected?
Consider the following illustrative scenario as an example:
You purchased your first home in May 2015 and lived there until Jan 2019. In Dec 2015 when you were living there, you installed solar panels and added a carport. In Jan 2019 when you were moving out, you upgraded the cooktop and oven to attract tenants. In Sep 2019 when the tenants were living there, you changed a broken ceiling fan. Can the items mentioned above all be counted as your depreciation?
changed a broken ceiling fan. Can the items mentioned above all be counted as your depreciation?
Therefore, we always request our client to provide any expenditures incurred with descriptions, installation dates and costs.
Some companies have less years, does that mean they give you more depreciation each year?
We show 40-year schedules for both the diminishing value method and the prime cost method. In other words, your tax depreciation report is valid for 40 years. ATO sets the effective life of capital allowances and capital works for the items. Therefore, the amounts of depreciation each year will not be increased by showing fewer years in the schedule.
Can you claim tax depreciation from your Overseas properties?
As an Australia resident for tax purposes, you are eligible to claim tax depreciation from your overseas investment properties. Our Directors have experience in completing Tax Depreciation Schedules on many properties throughout cities of the world including Dubai, London, Singapore, New York, and Auckland. Furthermore, Our team uses local construction costs to calculate build costs, utilizing the current exchange rates between the property location currency and Australia (AUD).