About Jim’s Tax Depreciation
Jim’s Building Inspections is the largest and most trusted name in Australia when it comes to residential and commercial property inspections. Each year we complete more than 60,000+ inspections by more than 150 industry experts with decades of experience. Our partnership with Koste Chartered Quantity Surveyors, who are experts in preparing Tax depreciation schedules for residential, commercial, and industrial clients nationally ensures maximum compliant tax depreciation deductions. Their experienced quantity surveyors and tax registered agents have a wealth of experience, having advised some of Australia’s leading property investment companies and superannuation funds.
Property investors lose out on billions in unclaimed tax depreciation
Australian investors could be claiming an extra $5,000 per property at tax time by following a few simple steps, according to a leading industry expert.
Chartered Tax Depreciation Quantity Surveyor Mark Kilroy says the Australian Tax Office (ATO) is sitting on billions in unclaimed tax depreciation entitlements this tax season.
“Only 40 per cent of investors are taking advantage of property tax depreciation schedules which average claims of just over $3,000 – thousands lower than the claimable average of $8,000,” says Mr Kilroy.
“Investors are simply unaware of the benefits and the thousands of dollars they could be claiming.
“They’re losing money because they’re probably self-assessing claims, or they’ve employed unqualified persons to carry out the claim.”
Mr Kilroy says quantity surveyors who prepare tax depreciation schedules should actually visit the property rather than base the report on a telephone conversation with the client.
“I always recommend carrying out a site survey to compile the report – this ensures clients get a detailed and accurate schedule which in turn maximises the claimable amount,” says Mr Kilroy.
Investor’s depreciation benefits vary depending on the type of building, its age, fit out and use, and ATO legislation states that the owner of a residential investment property can only claim capital works deductions if construction commenced after 18 July 1985.
However, depreciation of plant and equipment is not limited by age, rather it is the condition and the quality of each item which contributes to the depreciable amount.
“If your property is eligible for deductions and you’ve never claimed depreciation, you could be entitled to a substantial back claim,” says Mr Kilroy.
“For example, one of my clients who’d never claimed depreciation on 1990s built renovated property bought for $650,000 property claimed upward of $14,500 in the first year and an average of $8,000 every year thereafter.
“Jim’s Building Inspections has the largest team of professionals able to identify and survey both capital and structural works carried out post original construction. Having a partnership with Chartered Quantity Surveyors who has detailed knowledge of the current legislation surrounding plant and equipment, ensures to maximum tax depreciation for clients.”
For more information and a free depreciation calculation, visit Jim’s Building Inspections – Tax Depreciation Calculator for a free online estimate or call 131 546