Tax Depreciation Schedules
A Tax Depreciation Schedule is simply a report on all the items in an investment property that are decreasing in value. For properties built after 18th July 1985 this includes the building itself and if your property qualifies, it is important that the construction cost be estimated by a Quantity Surveyor in the absence of original construction data being available from the vendor. A number of firms that supply tax depreciation schedules do not use specialised Tax Depreciation Quantity Surveyors so it is important to check!
All investment properties can have their assets depreciated and even older properties often contain sufficient fixtures and fittings to make them viable candidates for a professionally prepared Tax Depreciation Schedule. Most renovations carried out after 18 July 1985, even by previous owners, can be depreciated. And to gain more insight into this depreciation a specialised Tax Depreciation Quantity Surveyor would be advantageous to your investment.
Immediate tax depreciation write off and low value pool
If you have purchased an asset for your rental property during this tax year and it is valued under $300, you can claim the entire cost on your return.
The Low Value Pool rules can be applied to assets that cost between $300 and $1,000. The pool enables items to be depreciated more quickly. Items that enter the pool during the year are depreciated at 18.75% in the first year, and then 37.5% per year after that on the diminishing total. For more info on this you can utilise our Tax Depreciation Calculator.