Principal Property becomes Investment Property
If you have just decided to turn Your Principal Property into an Investment Property then you have a couple of extra obligations (hoops) to jump through.
…Nothing difficult though.
TIP: As you have not recently purchased the property the ATO will want to know the Properties value immediately prior to it being an Income Producing Property. This is so the ATO can work out any Capital Gains Tax in the future.
In short, you will need to get a Property Valuer write up a report for you. -Not us, but we can recommend a few good ones.
TIP: You want the property to be Valued as high as possible.
Now on to the Tax Depreciation Side of things
Nothing much changes for Tax Depreciation Reporting on a former Principal Property. All the same Tax Laws & Tax Rulings apply. The property will need to be ‘Available for Rent’ for you to be able to claim Tax Depreciation on the Property.
If you are not already a client of ours, then I’m sure soon you will be Very Happy with becoming a part of the fold.
Wondering what to do now?
Hopefully I can provide some answers for you.
If you have already had a Tax depreciation Report carried out on another property then you’ll know all about it and how much tax you can save. A nice big Refund cheque each year!
If it also happens to be your 1st Investment Property then, no doubt, someone has told you to get a Tax Depreciation Schedule prepared. If you’re like most 1st time Landlords you are probably thinking; What is it? and, Why do I need it? Money is already really tight!
Obtaining and using a Tax Depreciation Report is a fairly straightforward process.
Essentially, Your Accountant will WANT the report so they can minimise your tax -This will greatly improve your cash flow. Especially in the early years of ownership!
The ATO allows an Investment Property owner to DEPRECIATE, or Write-Off, the value of pretty much everything in and around your Investment Property.
Basically, if you incur an expense as a result of owning an Investment Property you can CLAIM IT.
-Now there are 1 or 2 exceptions to this rule -like Soft Landscaping.
In short, you cannot depreciate items that grow -Plants, Turf, Trees etc.
Now at this point I should mention that you Can still CLAIM for the maintenance of such items. So the Lawn Mowing & Gardening bills are all claimable as Maintenance items at 100% Write-Off!
Here is a quick list of what can be claimed as an expense when related to your Investment Property. The list is based on a list provided by the ATO so you know it’s all above board.
All of these items are claimable at 100% write-off.
Body Corporate Fees
Gardening and Lawn Mowing
Property Agent Fees
Repairs and Maintenance
Stationery and Postage
Travel undertaken to inspect or maintain the property or to collect the rent
+ Everything we put into the Tax Depreciation Report!
N.B. This List is NOT Exhaustive and many more expenses can be claimed if they are applicable to your Property.
Approximately 70% of all Tax Depreciation Reports carried out by us are for:
Friends & Family of Past Clients
“WRC is now our first call for a Tax Depreciation schedule on a new property. Will is fast and efficient and always able to fit us in. I have the report back promptly and it is always well presented and easy to understand. I recommend him without hesitation”. Nathan Vickery
…Join the Movement and become one of our regular Investment Property Buyers.
What do We do for You?
I am a 2nd Generation Quantity Surveyor. My Father, Ron Callaghan, has been a QS for 52 years!
We have been working together since 2008.
Ron has been providing Tax Depreciation reports since 1993!
We work Very hard to ensure no Stone is left unturned when eeking out Every Possible Tax Deduction in Your Investment Property.
There are Many Tax Depreciation Firms looking to take on any, and every client.
We are NOT one of them.
We work almost exclusively with clients -Past & Present as well as clients referred directly to us.
Our reports are Not Cookie Cutter reports. They are tailored to the precise needs of our clients.
I have not found an Accountant who does not LOVE our Reports!
In short, the depreciation report you receive from us will be everything your Accountant will ever want. -When you Request-a-Quote I’ll send you a detailed Sample Report which you can even send to your Accountant to Make Sure it meets their Standards!
Former Principal Properties are Particularly interesting to me. They always have hard to find Property Improvements that most overlook. This can make a big difference to Your Yearly Tax Savings.
Quality Before Quantity:
We put a LOT more time & effort into our reports to ensure our clients are very well looked after.
“I found the contact information from internet of WRC and several other companies, I tried to contact them in German time afternoon, but in Australia it was evening already, however I got reply soon from Will Callaghan. The email was simple but hit points. WRC always response to me in a reasonably short time during communication. I’m happy to go with them for the quantity surveying of my house in Brisbane. The staff in the company is very designated and very thoughtful, I’m sure the quantity survey report prepared by them will be very useful for my tax depreciation needs. I would like to give WRC 5-star rate.” Helen Yong Qian
One of our FULLY QUALIFIED and Registered Quantity Surveyors will personally inspect YOUR Investment Property. This is a service MANY of our competitors DO NOT offer! But more on that later.
Back at the office, your Tax Depreciation Schedule will then be prepared by a Fully Qualified Quantity Surveyor.
An Email copy will be sent directly to you and your Accountant.
An Invoice will be emailed at about the same time. -We only send our invoices out before completing the work when June 30 is approaching.
“Prompt, seamless and efficient. We requested the service for our Queensland. property while living in Sydney and Will was fantastic in getting it all organised in under a week with quality report. Well done and thanks”. Huda Olsson
What to do NOW!
Get a quick quote for your New Investment Property & start getting Cash back from the ATO Now.
What to Expect when Making Contact with us:
I know what it’s like trying to find the right person to help with a Problem. That’s why I like to be upfront with everything You Need-to-Know about Tax Depreciation. Whether you will Benefit from the service, and whether we will be able to Maximise Your TAX SAVINGS.
After making Contact, I will send you an email quote & give you a quick call you to discuss your Investment Property.
I’ll then leave you be while you decide what’s best for you. We are not in the business of harassing potential clients.
1. We Promise to keep your Personal & Private contact details Secure and NEVER Sold.
2. We will NOT bug you with emails and phone calls if you choose Not to go with us.
3. We Promise you will speak with a QS every time you call -we DO NOT use call centres.
Get a quick quote for your New Investment Property. No hassles and alway VERY informative.
“Very prompt, friendly, professional and thorough service. Thanks Will!” Sarah Rowe
Click Here ⇒ Contact Us ⇐ to Find out How we can Help.
“WRC was referred to me by my accountant. Not knowing much about the report I needed, I spoke to Will and he was exceptionally helpful. From knowing exactly what I needed, to arranging access to the property with the rental agency, the whole process was smooth and efficient. Report was simple to understand, and the turnaround time from date of phone call, to date of report was very quick! Would highly recommend WRC and Will – 5/5!!!!!!” Zoe Fox
-An Important Note on Credit Card Payments:
We have a very easy to use and secure online payment system courtesy of Xero Accounting.
We DO NOT CHARGE ANY CREDIT CARD FEES!
I hate paying card fees when I’m sent a bill -so I refuse to charge my clients a Card fee.
“I am a taxation professional who recently engaged Will (WRC QS) to assess several properties for depreciation/capital works purposes. Will did an excellent job, his final report was well constructed, easy to follow and fairly seamless with what I had done to date tax-wise”. Robert Daly -Chartered Accountant