PROPERTY Tax Depreciation

What is tax depreciation?

Put simply, property tax depreciation refers to the annual wear and tear of a building and its fixtures and fittings. As your property ages it gradually wears out, which in accounting terms means it depreciates in value. This loss in value can be claimed as an annual tax deduction by any tax payer who owns a property that produces income. Any property investor can claim this deduction, granted they have a Tax Depreciation Schedule completed on the property.

What is a Depreciation Schedule?

A Tax Depreciation Schedule is a report prepared by a suitably qualified Quantity Surveyor which outlines the depreciation allowances that you, as an investor, are entitled to. The report will highlight items of plant and equipment and capital costs that may be depreciated. It incorporates the value of each item and then calculates the amount you can deduct each year as part of your tax return. All property investors should have a tax depreciation schedule completed to maximise their tax deductions and improve the cashflow position of their investment.

What is included in my Depreciation Schedule?

At My Depreciation our schedules incorporate the following information:

  • A method statement.
  • Details derived from the application form.
  • The details derived from our site inspection (Full Inspection option only).
  • A summary of the Diminishing Value Method.
  • A detailed assessment of plant and equipment to be depreciated, including a 10 year forecast for the diminishing value method of depreciation.
  • Graphical representation of yearly claims and cumulative claims.
  • Signed certification of the report.
  • Site photographs (Full Inspection option only).

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