Do you even need a Tax Depreciation Report? -Or are you just throwing away Good money!
If you have an investment property, then the short answer is YES -you need a report.
But, in some very rare circumstances, this is not the case -I’ve outlined some examples below.
#1 reason why you need a report: To stop the unnecessary loss of your money to the Tax Office.
#2 reason why you need a report: Pretty similar to number 1 here: …Why pay tax you don’t need to be paying!
3 Need-to-know Facts about a tax depreciation report:
- -The report cost is 100% tax deductible -just like your accountant’s fee.
- -You only buy a report once -it will last 40 years.
- -This report CANNOT be completed by anyone other than a qualified Quantity Surveyor -that’s in ATO legislation.
So, who qualifies for a tax depreciation report?
New or old, large or small, residential, commercial, industrial, Airbnb or holiday let. Renovated or original -almost every single investment property is worthy of a tax depreciation report. What changes is how much benefit there is for you. Regardless of where your property is located or how much it cost to buy, a tax depreciation report can be really improve your cash flow. Your property could be in Brisbane or Toowoomba, Townsville or Sydney, in fact, your property could be anywhere along the East Coast of Australia. Perhaps you paid $90,000 or even $3.5 million for your Investment Property, we will work as hard as we can to ensure Maximum tax deductions & the fastest turnaround time possible.
My Father, brother & I have carried out thousands of tax depreciation reports on investment properties of all types, size and age and have never assessed a property and found it to be not worthwhile for our client; No matter which type of property you have, we are sure that there will be sizable depreciation available.
Are Older houses worthwhile doing? Surprisingly yes!
If you’ve ever bought & sold property you would have noticed how many hoops you have to jump through to get your house a pass mark from the Building & Pest Inspectors. That’s because every year legislation for occupant safety strengthens. Because of this, we find almost every older property has had significant work carried out to make it safe & ‘legal’ for renting purposes.
Mandatory safety upgrades = tax deductions
Energy efficiency upgrades = tax deductions
Repairs & Maintenance = tax deductions
Renovations = tax deductions
Situations where getting a tax depreciation report it’s simply not worthwhile are rare, but certainly not unheard of. We’ve had our fair share of clients that we’ve advised not to get a report. Typically, these are properties built between 1981-1987 with only 1 previous owner. There seems to be quite a few houses built in this time that are entering the ‘rental market’ for the first time. Perhaps, the original owners -now looking at retirement villages, have spent very little on improvements over the years and have only just sold to an investor -leaving little in the way of available deductions. In any event, properties that are not worth getting a report on do exist and it does happen. We advise our clients on a case-by-case basis. If you have doubts about your properties tax depreciation quality score, give us a call or shoot us an email when you get a chance and we’ll give you the best advice for moving forward.
YOU WANT TO DEAL WITH REAL PEOPLE, not robots and not some call centre in the Philippines.
It’s your call ….but if you do get in touch with us you’ll get a personal response directly from me, William Callaghan, a real-life human who happens to be a fully qualified Quantity Surveyor. And, you’ll get my direct email address, so if you have additional questions just get in touch.
P.S. Don’t forget we will give you the report for FREE if we say “yes, do it” only to find the deductions simply weren’t there to be had. i.e. At no point will we miss-lead you, and if we do ‘get it wrong’ we will give you the report (which your accountant is welcome to use) just for wasting your time.
For Property Investors who need a Tax Depreciation Report
-Get your Quote straight in your inbox (usually under 2.5 hrs)
“Will has prepared schedules for two properties and on both occasions this was a simple and quick process. Will was happy to answer any of our questions and provided a great service. I would highly recommend Will to others” Rebecca. S