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TAX DEPRECIATION

We offer cost effective Tax Depreciation Schedules for Investment properties for Individuals and Business.

Nine Reasons – Why YOU Should Have A Professional Depreciation Schedule For Your Investment Property

What is Depreciation

Depreciation is the amount of money you can “write-off” (claim as expensed or used up) against the value of any assets used in the course of producing assessable income.

In the case of property investors, investors may offset their taxable income against expenditure on plant and equipment used to produce assessable income.

Plant and Equipment includes items such as Ovens, Dishwashers, Carpets Blinds, Lifts, etc. The ATO provides specific guidelines as to how these write-offs are to occur.

Who Can claim the Depreciation?

Depreciation can be claimed by the owner of the Plant and Equipment, the one who is earning income from the use of these items.

9 Advantages of Having Your Investment Property Depreciation Claims Professionally Calculated & Prepared

1. “Legitimatise” Your Depreciation Claims
ATO Warns Property Investors to ‘Get It Right’

Accountants and Valuers are not allowed to prepare a schedule under the ATO Rulings, and if you prepare your own schedule that is incorrect, the risk of heavy fines is far greater. Also The federal government is spending an extra $216.4 million to assist in the enforcement of Tax Compliance Rules on taxpayers, and the focus is heavily on real estate. By having an external, independent and professional person prepare your Depreciation Schedule the authenticity and legitimacy of your claims are enhanced.

2. Maximise Your Claims With a Thorough & Accurate Report
Research has shown that 2.4 Billion dollars in Tax Deprecation Benefits have yet to be claimed over the last 4 years.
Defining the applicable taxation rulings on items to be included in the Depreciation Schedule can be confusing as can determining the value of these items. Not getting this right could cost you money by limiting the number or the amount of deductions claimed.

3. Fixed Fee
We offer a fixed fee service for either a unit or house, furnished or unfurnished. This gives you the advantage of no hidden charges that may apply from other companies.

4. Tax Deductible
The preparation of Tax Depreciation Schedules is 100% tax deductible, which is a minimal outlay for the return you receive by way of tax deductions.

5. Fast Turnaround
By having a two week turnaround of a Depreciation Schedule, gives you time to plan appointments with your accountant, and have your matters finalised efficiently.

6. 10 Year Depreciation Schedule of Deductions
Once the report has been compiled a ten year schedule is included and does not need to be updated each year.

7. Presented in 2 methods
There are 2 main methods called “Prime Cost” and “Diminishing Value”
Prime Cost Method an Asset depreciates every year by the same amount.
Diminishing Value Method means that depreciation is calculated each year by using a constant percentage to of the assets adjusted tax value.
Low Value Pool is a part used in the diminishing value method and accelerates the depreciation rates at 18.75% Year 1 and 37.5% until zero value. The Low Value Pool varies for different types of investor.
We provide both methods for you and your accountant to choose which method.

8. Colour Photo of Property
It’s often difficult to remember and describe what your property looked like when you first purchased your investment. By having a Colour Photograph, your accountant can visualise your property and you also have a record of its condition.

9. Value for Money
Our Services are 10% under the usual retail price for $480 Inc GST.
To have a Tax Depreciation Schedule prepared for your property contact us now

Update April 2014:
When buying an investment property, it can be quite scared if it’s your first time, when you put your trust in your advisor. An essential part of your investment is called a tax depreciation schedule which offsets your taxable income with a negative geared property.

The building allowances are split into 2 main areas, the building shell that attracts a 2.5 percent of the value of the fixed items such as kitchen,carport and pool areas, and then there is the internal chatels, different items are depreciated with their effective life or how long the item will last, such as carpets,dishwasher,hot water system, curtains and furniture. Improvements made to the building can be allowed for for Capitol improvement, but you can not claim landscaping in the schedule nor repairs and maintenance.