Tax Depreciation Schedules - What are they and should you get one?
Find out how investing in a Tax Depreciation can help you gain more from your investment.
Find out everything you need to know about Tax Depreciation Schedules and if they are really worth the cost.
It's common knowledge that purchasing property is a fairly solid investment strategy, as a home has the potential to increase in value over time. However, what many people fail to realise is that while the property itself may appreciate, the physical structure and its components actually experience depreciation over time.
This gradual wear and tear on your investment can actually work to your advantage and generate income for you and this is where having a Tax Depreciation Schedule comes in handy.
What is a Tax Depreciation Schedule?
A Tax Depreciation Schedule is a document that lists all the assets in a property and their estimated useful life for tax purposes. It's an important tool for property owners and investors, providing several benefits that can help maximise their return on investment and minimise tax liabilities.
The customised report calculates the amount of depreciation you can claim over the life of your property based on its age and specific features.
Using the depreciation schedule, your accountant will file a claim with the Australian Taxation Office on your behalf. The schedule is also fully deductible on your next return.
What are some of the benefits of a Tax Depreciation Schedule?
Accurate Record Keeping: A Tax Depreciation Schedule provides an accurate record of all assets in a property, including their purchase date, cost, and expected life. This information is important for tax purposes and helps ensure that owners are taking full advantage of all available tax deductions.
Compliance with Australian Tax Laws: A Tax Depreciation Schedule helps property owners and investors stay compliant with tax laws, avoiding penalties and interest charges. It ensures that all tax-deductible expenses are properly accounted for and that the property is being depreciated in accordance with the Australian Tax Office's guidelines.
Increased Cash Flow: A Tax Depreciation Schedule allows property owners and investors to claim deductions on their taxable income, reducing their overall tax liabilities. This results in increased cash flow, which can then be reinvested back into the property or used for other purposes.
Improved Investment Decisions: A Tax Depreciation Schedule provides valuable information for making investment decisions. By estimating the useful life of assets, property owners and investors can determine the best time to replace them, reducing maintenance costs and increasing their return on investment.
Cost-Effective: A Tax Depreciation Schedule is a cost-effective way to ensure that all tax-deductible expenses are properly accounted for. It's a one-time expense that can provide benefits for many years to come, making it a smart investment for property owners and investors.
What is the cost of a Tax Depreciation Schedule?
Although tax depreciation schedules typically come with a price tag of a few hundred dollars which can seem pricey, but it is extremely valuable when it comes to year-end financial planning. Investing in one can save you both time and money in the long run.
The cost will be dependent on several factors, such as the property's type, location, and complexity. For the typical residential home, a standard price range would be around $500-$700.
According to H&R block’s Director of Tax Communications, there are thousands of dollars going unclaimed every year and up to 80% of property investors are failing to take advantage of property depreciation because they have not obtained a professional depreciation schedule.
How can I book my Tax Depreciation Schedule?
Rapid Tax Depreciation, in collaboration with RentBetter, offers a professional service to complete a comprehensive and concise quality-assured depreciation report for you.
Through RentBetter, you can get your Tax Depreciation Schedule quote in a couple of easy steps.
Step 1 - Enter your details to book your Tax Depreciation Schedule and provide some basic information about your property and requirements.
Step 2 - After you submit the information, you will receive an email with a quote for the schedule.
An important tool for property owners to maximise their investment.
A Tax Depreciation Schedule is an important tool for property owners and investors. It provides several benefits that can help maximise your return on investment, minimise tax liabilities, and ensure compliance with tax laws.
Whether you're a seasoned property investor or are starting out, a Tax Depreciation Schedule is an investment that's worth considering. It’s worth highlighting that the schedule is also 100% tax deductible and can be claimed in your next tax return so you’d be unwise to miss out!
To learn more about how you can book your Tax Depreciation Schedule, click here.
