What Is Tax Depreciation Schedule
What Is Tax Depreciation Schedule
A Tax Depreciation Schedule provides tax relief and cashflow from the investment properties and can be applied to new and existing properties.
Under ATO tax legislation, investment properties with income producing purposes are eligible for depreciation and property investors are entitled to claim tax deductions.
The ATO states that one of few appropriately qualified practitioners for calculating the depreciation of rental properties is a registered Quantity Surveyor.
Discover how to benefit from a Northwind Tax Depreciation report when investing in:
A New Property – Construction of a new building or purchase a new property
An Existing Building – Purchasing an existing property
Renovated an existing Property – The renovation work can be carried out by yourself or by a previous owner
Example of deductions available
The tax depreciation benefit available will vary greatly based on different building types, its purpose, the year in which it was built, and quality of the finishes and fixtures. The below table shows an estimated claimable depreciation using the Diminishing Value Method of Depreciation.
| Purchase Price | Year 1 Depreciation | Year 1-10 Accumulated Depreciation | |
|---|---|---|---|
| 1– Bedroom Apartment | $420,000 | $12,000 | $75,000 |
| 2 – Bedroom Apartment | $550,000 | $16,700 | $105,000 |
| 3 – Bedroom Townhouse | $380,000 | $12,200 | $81,000 |
| 3 – Bedroom Residential house | $415,000 | $14,000 | $100,000 |
| Old Property with Renovation | $425,000 | $7,700 | $42,000 |
| Warehouse with office | $800,000 | $21,000 | $190,000 |
| Small Strata Office | $400,000 | $12,000 | $65,000 |
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