Who needs a depreciation schedule?
A depreciation schedule is recommended for Investment Property Owners
What is a depreciation schedule and why is it important?
A Depreciation Schedule is a document that sets out how much depreciation you can claim on your investment property for the next 20 years. This annual deduction can help you cashflow your property, and gain access to funds that you are unable to claim without a depreciation schedule.
As an informed investor you’ll want to take advantage of all of the tax benefits that are available to residential property investors – who wants to pay more tax than they need to?
While your accountant can prepare you tax return, they’re not qualified to prepare a tax depreciation schedule. That’s where we come in!
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Frequently asked questions
If you’re buying a new home, you get to depreciate your house and the assets in it. If you purchase a used property, you can depreciate the building, but only assets that you install new yourself.
Based on an average $250,000 home, you can claim around an extra $35,000 in deductions over 5 years on a home you purchased new, compared with a 1 Year old home.
Depreciation is available on the building itself and on the assets within your property. That’s things like the carpet, dishwasher, oven, etc. The items that are ‘easily removed’. Buildings built after September 1987 depreciate at 2.5% per year for 40 years from the original date of construction. The assets depreciate much more rapidly.
When you’re looking to invest, you want to be certain that the property you are buying doesn’t have any hidden defects or costly repairs waiting to happen. Rather than organising for multiple professionals to go through the property, our consultants can provide a building inspection in conjunction with a depreciation schedule.
Just after the depreciation schedule? No worries. Our team can provide you with a comprehensive schedule, and all of the information you need to know with regards to your tax deductables. To enquire or learn more about this service, contact your local consultant on 131 546, or visit www.jimsbuildinginspections.com.au