Asset Reports has provided Australians with thousands of Residential and Commercial Depreciation Schedules, so we know what’s important to our clients.

Asset Reports is an Australian business, with our property inspectors and ATO-approved, TPB-registered Quantity Surveyors working alongside each other. We cover the entire metro area of Sydney, Melbourne, Brisbane and Perth, and have more regional reach than our competitors. All this adds up to maximum convenience and exceptional value for you.

We would like to offer our Tax Depreciation Services to employees of PwC for the special price of $295 (including GST) for Standard Residential Properties, and 50% off Commercial Properties (by quote).

– Tom Williams, Asset Reports Partner

Depreciation is often the second biggest Tax Deduction available on an investment property after Interest. With rental income on residential and commercial properties being substantially affected in 2020, now is the time to start claiming your Depreciation deductions!

Asset Reports is a registered Tax Agent for calculating Construction Costs and Depreciation. All Depreciation agents operate to the same TPB and AIQS guidelines, so paying more for a Schedule doesn’t result in more deductions.

The Situation

Asset Reports completed a Tax Depreciation Schedule for a tax accountant, as his own rental property. As always, Asset Reports prepared the schedule in an accountant-ready format, easily incorporated in the property owner’s annual tax return. The rental property was brand new, and the accountant was preparing his tax return for the end of the financial year, including the attributable depreciation associated with his rental property.

Our client rang to seek clarification on the difference in the first year depreciation value he calculated on the property, compared to the depreciation value that Asset Reports calculated.

Where we helped

Our core business is understanding the myriad of rules and regulations set out by the ATO for calculating property-related depreciation. The client was a highly proficient, experienced tax accountant, although not a property specialist, and sought Asset Reports advice to clarify the calculated differences.

Our client expected to apply a single depreciation rate of 2.5% p.a. (40 years life) across the entire cost of the property. The ATO allows a 2.5% depreciation rate for the building structure, but allows depreciation rates up to 100% (e.g. 1 year life) for other selected areas of the property.

By applying a single 2.5% on the entire property, our client calculated a first year depreciation rate of ~$6,000. This is significantly less than the actual deductible value allowed by the ATO.

The Real Kicker

Asset Reports applied the many various depreciation rates allowed by the ATO for property-related depreciation across the various asset sub-classes. By doing this, Asset Reports enabled accelerated depreciation of the non-structural areas of the property, realising a total first year tax deduction worth more than double our client’s own calculation.

We conduct a thorough site inspection to assess the structure, fittings and furnishings at the property.

Our qualified Quantity Surveyors produce the schedule detailing your deductions for up to 40 years.

Your accountant applies deductions to your annual tax returns throughout the life of the property.

Tom Williams
tom@assetreports.com.au
0419 349 919

Kristian Jeromson
kristian@assetreports.com.au
0488 044 322