Ferny Hills 
If you are new to property investing, it is important to consider having a depreciation schedule created for each investment property you own. In this article, we look at the basics of what a depreciation schedule is and its benefits along with some things to look out for.
What is a depreciation schedule?
A depreciation schedule is a report that details all available tax depreciation deductions for an investment property by projecting capital works deductions and plant and equipment depreciation for the life of the property.
These deductions can then be claimed as part of your tax return each financial year. Depending on the property, the tax savings could be significant.
Why do I need a depreciation schedule?
The advantages of having a depreciation schedule prepared include:
- Greater deductions for your tax return
- The schedule only needs to be done once (unless significant changes are made to the property) and the one-off fee is 100% tax-deductible
- You can use your schedule to adjust previous tax returns and claim deductions that may have been missed.
Some points to consider before getting a depreciation schedule:
- If the property is co-owned get split depreciation schedules to maximise deductions
- The property will need to be inspected by a quantity surveyor to ensure all possible deductions are included. If you search the internet for Depreciation Schedules, you will find quantity surveyors that specialise in this work
- You will need to give your depreciation schedule to your accountant for tax time
- You should have your schedule completed as soon after settlement as possible to ensure that you’re claiming the maximum deductions straight away
- If you make significant changes to your property, you may need to update your schedule.
At Professionals Priority we are here to support your property investment goals. Contact the office to speak with our experienced Property Management team.
