What is a Depreciation Schedule?
Chances are, if you are in the property sector, you’ve heard the term ‘depreciation schedule’ tossed around a few times; and chances are, if you are reading this article, you haven’t gotten one before. Hopefully this will give you some insight as to why you should reverse that decision.
But first thing’s first. Two important questions-
- Do you own an investment property?
- Do you wish to save thousands of dollars annually?
If you answered yes to both, keep reading for more information on what a depreciation schedule is, why you need one, how it’s prepared and who can prepare it for you. If you didn’t… keep reading anyway; it doesn’t hurt to build up your knowledge bank because who knows, maybe you’ll need to know this information someday.
So, What exactly is a Depreciation Schedule?
Just the way that a brand new car depreciates in value the moment you drive it out of the dealership, buildings (capital works), and the things inside them (plant & equipment) do too; and luckily for you, this depreciation can be claimed as a deduction. It is essentially compensation for the wear and tear of the building.
A depreciation schedule details the decline in value for each item annually i.e. available deductions. This value is then deducted off your taxable income, meaning you get taxed less, and are saving thousands as a result!
So what can actually be claimed? Contact us for more information, but as a starting point, blinds, carpet, air conditioning, exhaust fans, smoke alarms, and several appliances can be claimed- just to name a few!
Okay, so who prepares one of these?
A common question that seems to be thrown around is- can my accountant prepare a depreciation schedule? The question makes sense seeing as it is tax related, but the answer is actually no. Only a quantity surveyor is authorised to do so.
Final Tips and Reminders
So the question still remains,
- Do you own an investment property?
- Do you wish to save thousands of dollars annually?
If you answered yes to both, contact QPC&C for a quote today!
If you are interested in having QPC & C prepare a report for you, click here or head over to our “Contact Us” page.