Investment properties are a great way to secure your financial future. As an informed investor you’ll want to take advantage of all of the tax benefits that are available to residential property investors. Who wants to pay more tax than they need to?
A Depreciation Schedule is a long term investment. For an upfront 100% deductible fee, it sets out how much depreciation you can claim
for the next 20 years. This annual deduction can help you manage your property’s cash flow. You would be amazed at how many investors fail to claim depreciation.While your accountant can prepare you tax return, they’re not qualified to prepare a tax depreciation schedule. That’s where we come in!
What is included in a Depreciation Schedule?
Depreciation is available on the building itself and on the assets within your property. That’s things like the carpet, dishwasher, oven, etc. The items that are ‘easily removed’. Buildings constructed after September 1987 depreciate at a rate of 2.5% per year for 40 years from the original date of construction. The assets depreciate much more rapidly.
So Why Jim’s?
When you’re looking to invest, you want to be certain that the property you are buying doesn’t have any hidden defects or costly repairs waiting to happen. Rather than organising for multiple professionals to go through the property, our consultants can provide a building inspection in conjunction with a depreciation schedule.
Just after the depreciation schedule? No worries. Our team can provide you with a comprehensive schedule and all of the information you need to know with regard to your tax deductions. To enquire or learn more about this service, contact your local consultant on 131 546, or visit our website.
Conclusion
A depreciation schedule is a valuable tool for property investors looking to maximize their tax deductions and improve their cash flow. By documenting depreciation on both the building and its assets, investors can unlock significant savings. Don’t miss out on the potential benefits that a depreciation schedule can offer. Contact Jim’s Building Inspections today to take full advantage of this often-overlooked investment opportunity.
FAQs
A depreciation schedule outlines how much depreciation you can claim for both the building and assets inside your investment property.
It helps you claim tax deductions, reducing your taxable income and improving your property’s cash flow.
It typically covers a period of 20 years, offering annual tax deductions.
The building itself and removable assets like carpets, appliances, and fixtures can be depreciated.
Yes, but the method and rate of depreciation may vary based on the property’s construction date.
Yes, if the property is an investment, it can benefit from a depreciation schedule.
No, it also applies to commercial properties, providing the same tax benefits.
Yes, improvements can be included in the depreciation schedule to claim further deductions.
A depreciation schedule provides long-term deductions spread out over several years, while regular tax deductions may be one-time claims.
Depreciation schedules are specific to the tax laws of each country, so they may not apply outside of Australia.
Yes, working with a qualified surveyor ensures accuracy and maximizes your potential deductions.