Tax Depreciation Reports

Tax Depreciation Australia specialises in comprehensive Tax Depreciation Reports for all investment properties.

Our specialists have expert knowledge of Tax Depreciation and stay up to date with the latest regulations. We provide accurate reports, tailored to maximise your tax benefits. Trust us to navigate the complexities and optimise your investment returns. Click below the different types of investment assets Tax Deprecation Australia can complete Tax Depreciation reports on.

What is tax depreciation?

As an investment property gets older and experiences wear and tear, the value of the building structure and items in the building lose value. If you are an investor of property or a tenant of a commercial property you can claim this loss in value as a tax deduction. And as we know, a tax deduction reduces your taxable income which in turn means you may pay less tax.

To determine the deductions eligible for your property, Tax Depreciation Australia will prepare a tax depreciation schedule detailing the building costs for all deductible items within your property.

The ATO provides two methods for calculating property depreciation: the prime cost method or the diminishing value method, which can be used for your tax claims. We provide both of these methods in our reports. Your accountant will be able to advise on the best method to suit your situation.

TWO FORMS OF DEPRECIATION

Building allowance also referred to as Division 43:

The best way to understand what this is, is everything that is fixed to the building e.g. bricks, mortar, concrete, roofing, retaining walls, fencing wiring etc.

Plant and equipment also referred to as Division 40:

Plant and equipment typically refers to mechanical or removable assets within a property e.g. air conditioning units, light shades, ovens, blinds, carpet, loose furniture in instances where you are leasing your property out furnished.

Recent changes to depreciation

Tax Depreciation Australia stays abreast of all legislation changes that impact depreciation on investment. Once of the key changes that has been incorporated into our reports reflects the 2017 tax depreciation changes that came into effect on 9 May 2017 at 7:30pm.


As an overview, the following is the critical information that is now reflected in our reports.

You are eligible to claim property depreciation for tax purposes if you:

Note: Property investors who signed a contract to purchase a second-hand residential property after 7:30 pm on 9th May 2017 are not eligible to claim property depreciation on plant and equipment (division 40), however they can still claim tax depreciation on new plant and equipment like carpet and air-conditioning units.

what our report includes:

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