Tax Depreciation 

improves your cash flow and

 puts more money back in your pocket

What is Tax Depreciation?

Depreciation is an accounting term that describes the declining value of an asset as it ages and wears out over time. 

Even though many properties appreciate (increase in value) each year, from an accounting and ATO perspective the buildings and their assets actually age and decline in value each year.

Every year the lost value of those assets is claimable by owners as a tax deduction.

Depreciation is claimable under 2 types of ATO allowances: Division 40 and Division 43:

Division 40

Division 40 is the legislation that covers the depreciation of ‘plant and equipment’ within an Australian investment property.  Each plant and equipment item has an effective life set by the Australian Taxation Office (ATO) and the depreciation deduction available on that item is calculated using this effective life.

Division 43

Otherwise known as ‘Capital Works Allowance’ or ‘Building Write-Off’, Division 43 covers the deduction available to owners for the structural elements of the building and the items within the property that are deemed irremovable.

How much depreciation could I claim on my investment property?

Deductions vary in accordance with the property type, age and the works completed on the property over time.

With a few brief details we can conduct a free desktop estimate of deductions specifically for your property.  

How do I claim depreciation on my investment property?

Order your Report
We do the work
Claim your deductions

We need some basic information to get started, such as your property address and contact details to arrange access.  Get in touch today and we will be happy to guide you through the process and provide as much assistance as you need.

Our expert team will arrange inspection, conduct relevant property searches, estimate construction costs, assign asset values and effective lives, forecast claims over 40 years and deliver your report in a user-friendly format within 10 days of inspection (providing we have all relevant details from you).

Simply take your report along to your accountant, or have us deliver it directly, and start improving your cash flow straight away!  

Worried there aren't enough deductions in your property to make it worthwhile?

We will always advise if we don't believe a depreciation schedule will be worthwhile for you.

That means, if we don’t identify at least $2,000 in deductions in the first year – to ensure our fee is entirely covered in that first year – there will be no charge to you.  

That applies even if the first year is only a few months or a few weeks worth of deductions!

Ours is the best guarantee in the industry!

Myth Busted!

Old properties aren't worth a depreciation schedule

Time and time again, we hear of investors who have missed out on tens of thousands of dollars in legitimate tax depreciation deductions because they believed their properties were too old to be eligible.  The myth of old properties not being worth a tax  depreciation reports is busted day after day by leading tax depreciation specialists.

 

Myth Busted!

All depreciation reports are the same

Not all tax depreciation schedules are equal. Whilst the ATO prescribes standard rates for effective lives of construction and plant and equipment items, the varied methodologies used by depreciation service providers can result in thousands of dollars of difference in the final schedule outcome. A quality depreciation schedule improves the cash-flow position of a property, sometimes substantially, and can impact on the overall investment strategy adopted by investors.

Myth Busted!

Accountants can take care of depreciation

Accountants are not qualified to estimate construction costs, which includes more than just materials and construction labour.

For example, accountants are not qualified to estimate construction works and associated costs of previous works over the life of the property.

 

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