What is a Depreciation Schedule?
It breaks down the depreciation of the properties long-term and short term assets. It calculates the depreciation expense for the property and allocates the cost of each part of the property over the useful life. This can then be used to reduce your tax payable.
Depreciation benefits vary depending on the type of building, its age, use and fit out. Owners of residential investment properties and commercial investors, companies, tenants or trusts who hold commercial or industrial properties can all claim depreciation based on the diminishing value or prime cost methods of depreciation.
What’s included in a Depreciation Schedule?
It includes the maximum depreciation deductions each financial year a property owner can claim. It includes both deductions for capital works and the plant and equipment depreciating assets for the ATO specified life time of the property – 40 years.
It includes a break up of common areas where legislation allows to ensure tax deductions are maximised
Your schedule is pro-rata calculated for the first year of ownership to ensure you can claim even partial year deductions and don’t miss out on returns
There are 2 Ways in which you can have your Depreciation Schedule done.
1. By visiting the premises – this attracts a higher fee as a quantity surveyor has to be on site
2. By doing it from the office – this attracts a reduced fee and certain requirements are needed in order for this process to happen
If you would like to see a sample of a Depreciation Schedule click here or to discuss it further please contact us