Why Is Tax Depreciation So Valuable?
A tax depreciation schedule is a comprehensive report that outlines all the eligible depreciation deductions for an income-producing property or its assets. This detailed document is prepared by a qualified quantity surveyor or tax professional and breaks down the claimable depreciation for:
- Plant and Equipment (Division 40):
- Removable or mechanical assets, including appliances, furniture, and air conditioning.
- Capital Works (Division 43):
- Structural elements of a building, such as walls, floors, and roofing.
- Plant and Equipment (Division 40):
How Does a Depreciation Schedule Benefit You?
A tax depreciation schedule allows property owners to legally reduce their taxable income by claiming deductions for the wear and tear or deterioration of buildings, fixtures, and fittings over time. The schedule provides:
- An Itemised List: Includes all depreciable assets, their effective life, and the yearly deductions that can be claimed.
- Improved Cash Flow: Reduces taxable income, allowing property investors to enhance their returns.
Why is a Depreciation Schedule Essential?
- Lifetime Validity: The schedule is typically prepared once and remains valid for the life of the property unless significant renovations or changes occur.
- Customisation: Our tax depreciation schedules include reports for both the prime cost and diminishing value methods, along with a low-value pool option for smaller assets.
Maximised Savings: It ensures you claim all eligible deductions, making it an indispensable tool for property investors aiming to improve cash flow and maximise tax savings.
TDQS Depreciation Schedules
At TDQS, we provide 40-year depreciation reports tailored to meet your property’s unique characteristics. Our schedules are designed to ensure compliance with Australian Tax Office (ATO) guidelines, giving you peace of mind while maximising your tax deductions.
