What is Tax Depreciation?
Just like you claim wear and tear on a car purchased for income producing purposes, you can also claim the depreciation of your investment property against your taxable income.
There are two types of allowances available: depreciation of Plant and Equipment, and Building Allowance.
Plant and Equipment refers to items within the building like ovens, dishwashers, carpet, light fittings, blinds etc. Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income.
How much will I save?
Each property is different and many varying factors must be considered when preparing a tax depreciation schedule. Use our Depreciation Calculator to get an estimate of potential deductions available to you:
How do the figures indicated on the calculator help me?
The allowances indicated on the calculator result in real dollar tax savings to you. Depreciation allowances reduce your taxable income. For example, if your depreciation report specifies a claim of $10,000 – then your taxable income should be reduced by that amount.
How long will it take to complete my tax depreciation schedule?
Your depreciation schedule will take approximately 2-3 weeks to complete, as long as your tenant allows us to inspect your property without delay.
How much will my tax depreciation schedule cost?
Being a valued Callaughan Partners client, we have secured a special price for our clients of $600 per report.
In order to claim any allowance indicated on the calculator, you will need a specific report for your property.
To get a report specific for your property, simply click here:
The cost of depreciation schedules are quoted individually and fees are 100% tax deductible.
Is my property too old to claim Depreciation?
The simple answer is no. If your residential property was built after July 1985 you will be able to claim both Building Allowance and Plant and Equipment. If construction on your property commenced prior to this date, you can only claim depreciation on Plant and Equipment (i.e. carpet, blinds, ovens etc). But it will still be worthwhile. Please check your property using the Tax Depreciation Calculator
My property is renovated. Can I still claim?
Yes. We will need to know how much you spent on renovations. This is an ATO obligation. If the previous owner completed the renovations you are STILL entitled to claim depreciation. In either case, where the cost of renovation is unknown, we are fully qualified to make that estimation.
