What is Tax Depreciation?

Depreciation is the accounting method used for calculating the loss in value for a building and its fixtures & fittings over time.

With a Tax Depreciation Schedule, you can claim that loss on rental properties as a deduction in your tax return every year until the cost of the asset is fully written off.

Tax Depreciation is crucial for any investment property strategy.

Why get a Tax Depreciation Schedule?

  • For financial gain
  • To generate additional cash flow that can be used to fund other investments
  • To offset the losses from falling rents and high vacancy rates
  • To claim an immediate deduction on scrapped items if renovating

What can you claim Depreciation on?

  • Bricks & mortar
  • Carpets & flooring
  • White goods & electrical appliances
  • Toilets & showers
  • Pools & pergolas
  • Air conditioning & solar panels
  • Door handles & garbage bins
  • Strata common areas

Benefits of Tax Depreciation.

New house
Purchase price: $500,000
Personal tax rate: 37%*
Without tax depreciation With tax depreciation
Expenses P/A i.e. interest rates, mgt fees, -$7,196

Total deductions: -$7,196

Tax refund: $2,663

Expenses P/A. -$7,196

Depreciation (1st year) -$10,758

Total deductions: -$17,954

Tax refund: $6,643*

What type of investor are you?

How do I book?

1

CALL ASSET REPORTS TO GET A FREE ESTIMATE BEFORE YOU BOOK!

2

WE WILL ARRANGE EVERYTHING!

3

ONCE WE HAVE ALL OF THE INFORMATION AND DONE THE SITE INSPECTION, YOU WILL RECIEVE THE DOCUMENT WITHIN 7 DAYS!