What is a Tax Depreciation Schedule for an Investment Property?

Maximising our tax returns – we all love it for our employment and potential investment portfolios.

If you’re a current Perth property investor or you’re wanting to become one, you may know something about a tax depreciation schedule.

If you don’t, that’s okay. The Thought Leaders in Real Estate are here to help you understand it all.

Depreciation is most commonly the biggest tax deduction a Perth property investor can claim each year, which means a tax depreciation schedule ensures you maximise those tax deductions whenever and wherever possible.

Want to know more about tax depreciation schedules and property investment in Perth?

Read more from the Perth property management specialists, Thought Leaders Real Estate.

Why are tax depreciation schedules wise for property investment?

For an investment property in Perth, these schedules assist the investor to claim the maximum tax deductions possible for the annual depreciation of their investment property.

For up to 40 years, these deductions are often up to thousands of dollars a year!

The tax depreciation schedule will:

·         Ensure investor claims for capital allowance, plant and equipment assets are claimed in accordance with the ATO legislation,

·         Save property investors time and effort in DIY-ing the calculations,

·         Save money with an accountant, and

·         Ensure deductions are maximised, creating the best cashflow result for your Perth investment property.

Because what’s an investment property if it’s not making you money?

What does a tax depreciation schedule include?

A tax depreciation schedule should involve all the construction costs and assets, including previous renovations (either by yourself or past owners).

More specifically, it should include:

·         A 40-year forecast of deductions,

·         Assembling of low-cost and low-value assets to accelerate claims in the earlier years,

·         Disposal of assets where applicable,

·         Identification and separation of staged capital works and improvements,

·         Inclusion of immediate asset write-offs,

·         Individually itemised asset values,

·         Itemised depreciation of Division 40 assets for application against capital gains tax at sale, and

·         Reporting diminishing value and prime-cost methods of depreciation.

Not sure where to start? A professional property management Perth team will show you the ropes of successful property investment in Perth.

Look for the Thought Leaders in Perth property management to climb the ladder of investment property success.

Where do you acquire and submit a tax depreciation schedule?

A quantity surveyor will estimate historical and current construction costs, so they’re the best point of call for purchasing one.

To submit your tax depreciation schedule, deliver it to your accountant and they’ll apply the results in your tax return, or do it yourself at tax time.

Thought Leaders Property Management Perth

Maximising your property investment in Perth means you need a professional and proactive property management team.

We believe in:

·         Maximising rental income,

·         Minimising outgoing expenses, and

·         Maximising tax offsets

Trust in the Thought Leaders in Real Estate for buying, selling and leasing your Perth investment property.

Need professional property management in Perth?

Contact Thought Leaders Real Estate today for the game changers in property investment Perth assistance.