tax depreciation reportsIf you own an investment property – you are eligible now and our fee is 100% tax deductible.

A TAX DEPRECIATION SCHEDULE is a legal document prepared by ATO Compliant Quantity Surveyor.  The report outlines the depreciation allowances an investor is entitled, and this information allows your accountant to maximise your tax benefits possibly saving you money on your future tax returns.

HAPPI Reports can inspect your building and arrange for a qualified Quantity Surveyor who is also a Registered Tax Agent to assess the cost and value of capital items and prepare a schedule for you which details the maximum tax deduction available. All you then need to do then is provide the Depreciation Schedule to your tax accountant or tax adviser. They will then include the relevant information into your tax return.

The benefit to you is that you can reduce your tax payable in each year you own an income producing asset.

Under Income Tax law you are allowed to claim certain deductions for expenditure incurred in producing assessable income. Generally the value of capital assets (such as investment property buildings, plant, and equipment) decline over their effective lives. Because of this, the cost of capital assets used in gaining assessable income (property rent) can be written off over the effective life of each asset as tax deductions.

There are two possible types of depreciable deduction

  1. Capital works which refers to structural improvements made to a property. You can also deduct certain kinds of construction expenditure for properties conducted after mid, 1985. In the case of residential properties, the deduction would generally be spread over a period of 25 or 40 years. These are referred to as capital works deductions.
  • A building or extension (i.e. adding a room, garage, patio or pergola)
  • Alterations (removing or adding internal walls)
  • Structural improvements (i.e. adding a gazebo, carport, sealed driveway, retaining wall or fence)

The amount of the deduction you can claim depends on the type of construction and the date construction started.

  1. Plant and Asset: these are items within the property and also common areas where applicable on the date of settlement such as JWS, carpets, air conditioners, fans, furniture, TV antenna, pool equipment etc

All depreciation schedules include both Diminishing Value and Prime Cost methods. Please consult your Accountant for tax advice as to which method is best suited to your requirements.

Monies saved by a Depreciation Schedule can go towards

  • Periodic maintenance,
  • Renovations,
  • Improvements (which may increase rental returns)
  • Increasing your property portfolio.

Companies or individuals who prepare Tax Depreciation Schedules without conducting a full property inspection simply cannot certify that the calculations provided are legitimate and accurate so don’t risk it - a substandard Tax Depreciation Schedule will not withstand an ATO (Australian Taxation Office) audit unless completed by a qualified Quantity Surveyor.

Simply fill out the Tax Depreciation InspectionReport form and HAPPI  Inspections will respond shortly after.