What is Property Tax Depreciation?

While the land portion of your property increase over time, the physical building and all the fittings inside it wear down. The wear and tear of these assets can be claimed under two major components: Capital Works (Division 43) and Plant and Equipment (Division 40). You can claim wear and tear on these assets as long as they're income producing. 

Tax Depreciation Report

Residential & Commercial
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Claiming Tax Depreciation

Depreciation is non-cash deductions, it means that it has been built in your income producing properties whether you claim it or not. There is no reason to miss out on this deductions as you can save thousands tax dollars in doing so. 

Who can claim it? If you own income producing property, such as investment property, home office, office building, boarding house, and accommodation building, then you will be able to claim depreciation deductions.

 

Capital Works (Div. 43)

Australian Tax Office (ATO) specify that asset under division 43 can be claimed at 2.5% rate yearly for 40 years.

Generally, assets identified as Capital Works include all fixed / structural / permanent part of the building.

Example of Capital Works: walls, ceiling, fixed cabinetry, driveways, doors, windows.

Tax Depreciation Report

ATO has identified qualified Quantity Surveyor to legally prepare Tax Depreciation Report. At Ardeevee, we always prepare comprehensive depreciation report that is tailored to each individual to maximise deductions on their property.

Assets fall under division 40 generally are easily removable. The rate of deductions are different for every assets. These rates depend on the effective life of the asset identified. Deductions from Plant & Equipment generally yields more deductions in the first couple of years.

Example of Plant & Equipment: appliances, light fittings, blinds & curtains, air conditioning. floor coverings.

Plant & Equipment (Div. 40)
Our Tax Depreciation Report
  • Comprehensive depreciation methodology of Prime Cost and Diminishing value comparison

  • Table of depreciation value for each methodology for a quick summary on how many depreciation deductions you will be able to claim every year

  • A report up to 40 years (You only need to do 1 depreciation schedule per investment property)

  • Personalised inspection visit to your investment property by qualified Quantity Surveyor to ensure you will be able to claim as maximum as possible

  • A report that is tailored to your investment property purchase / rental condition to ensure you can claim as maximum as possible when you need it

  • Comprehensive list of all depreciable assets in your investment property

  • An accurate estimates of total construction cost of your investment property as you purchase

  • Your report will be stored 24/7 365 days in our server. If you lose your report, ask us and we will send you another copy

  • GUARANTEE you will be able to claim deductions AT LEAST 3x of our fees or your report will be FREE

  • Peace of mind with experienced Quantity Surveyor who is member of Australian Institute of Quantity Surveyor (AIQS) and Registered Tax Agent

  • Easy to read report, our report show necessary information only, yet comprehensive and professional