Tax Depreciation Schedule On A Rental Investment Property

What is Tax Depreciation?

Just like you claim wear and tear on a car purchased for income producing purposes, you can also claim the tax depreciation of your investment rental property against your taxable income.

There are two types of allowances available: depreciation of Plant and Equipment, and Building Allowance.

Plant and Equipment refers to items within the building like ovens, dishwashers, carpet, light fittings, blinds etc. Building Allowance refers to construction costs of the building itself such as concrete and brickwork. Both these costs can be offset against your assessable income.

How much will I save?

Each investment property is different and many varying factors must be considered when preparing a tax depreciation schedule. Use our depreciation calculator to get an estimate of potential deductions available to you: Free Tax Depreciation Calculator

According to the Australian Tax Office 52% of rental property investors don't claim all of their available tax deductions...

How do the figures indicated on the calculator help me?

The allowances indicated on the calculator result in real dollar tax savings to you. Tax depreciation allowances reduce your taxable income. For example, if your tax depreciation report specifies a claim of $10,000, then your taxable income should be reduced by that amount.

How long will it take to complete my schedule?

Your tax depreciation schedule will take approximately 2-3 weeks to complete, as long as your tenant allows us to inspect your property without delay.

How much will my depreciation schedule cost?

In order to claim any allowance indicated on the calculator, you will need a specific report for your property.
To get a report specific for your property, simply click here: Tax Depreciation Quote

The cost of depreciation schedules are quoted individually and fees are 100% tax deductible.

Is my property too old to claim Depreciation?

The simple answer is no. If your residential property was built after July 1985 you will be able to claim both Building Allowance and Plant and Equipment. If construction on your property commenced prior to this date, you can only claim depreciation on Plant and Equipment (i.e. carpet, blinds, ovens etc). But it will still be worthwhile. Please check your property using the Tax Depreciation Calculator

My property is renovated. Can I still claim?

Yes. We will need to know how much you spent on renovations. This is an ATO obligation. If the previous owner completed the renovations you are STILL entitled to claim depreciation. In either case, where the cost of renovation is unknown, we are fully qualified to make that estimation.

If you would like to learn more about property depreciation in general, please read Investment Property Depreciation

Free Tax Depreciation Calculator - Free Tax Depreciation Quotes