Depreciation for multifamily property owners

Multifamily owned property can offer excellent tax deductions

how to claim tax depreciation for multiple owners

To claim the tax depreciation on your investment property, even if it’s owned in multiple family names all you need do is contact a trusted quantity surveyor, recognised by the ATO through the Tax Practitioners Board, as a qualified tax agent.

Split reports for multifamily property

When you own and investment rental property with other family members, or even friends, you can still claim your share of the depreciation entitlements.

All you need do is have your quantity surveyor (QS) prepare the report based on ownership entitlements.

For Example
I recently inspected a residential rental property in Marsden. There were 4 owners on the title.
2 were husband and wife, while the other two were cousins.
Each part owner of the property was able to claim their share of the Division 40 and Division 43 deductibles in their yearly tax return.
In this case, it was 25% share for each owner. A depreciation schedule was prepared for each owner with all calculations within broken down to their 25% share.

claiming for unequal share of ownership

Sometimes, but very rarely, a property is owned by multiple owners with an unequal share.
When this happens, be sure to notify your quantity surveyor as to the ratio split so that the depreciation schedule is apportioned appropriately.
Otherwise the QS has to go back and change it all – which could cost you more money.

can you Backdate your depreciation schedule?

yes, you can backdate your depreciation schedule. In fact, virtually every good quantity surveyor will prepare your report using the date you first offered the property for rent.
The calculations will then continue forward for 40-years.
Your accountant may be able to submit what’s called amended tax returns for previously submitted tax returns and have the missed deductions refunded in a lump sum

Note: you can only go back 2 previous financial years + the most recent one you are yet to lodge

Have any Questions?

Simply get in touch with me and I’ll personally address any questions you have.

Particularly if you are new to investment property ownership. I’ll happily share some tips with you.

If you found this helpful, you may also find some of my other articles beneficial too. And to see some real life examples of what our clients have been receiving in tax depreciation deductions, check out our Client Portfolio page. But it’s usually best to start at the beginning by visiting our home page

This article was written by William Callaghan A.A.I.Q.S.
2nd generation Quantity Surveyor and founder of WRC Quantity Surveying

Published March 2023