Benefits of Residential Depreciation
We value the vast number of referrals we receive in response to our service.
‘Depreciation’ has been one of the best kept secrets in property investment. More correctly depreciation claims are a composite of the Capital Works Allowance (Division 43 of the Income Tax Act) and Depreciable items under Division 40 of the Act. We have provided more detailed information elsewhere however to put it simply, a residential tax depreciation report prepared by ACP Quantity Surveyors will typically find our clients a first year tax deduction between $2,000 and $15,000 – depending on the age of the building.
Generally we find that many clients haven’t claimed in the past because they either didn’t think they could, they had not been informed of the possible savings or that it seemed too hard.
We hope that the above will assist in clarifying the benefits of residential property depreciation and confirm that despite recent changes made by the ATO, our guarantee hasn’t changed.
If your property was built after 1987, we guarantee that you will receive not 2X but a minimum of 3X our fee in deductions in the first full year of claim. In fact, we guarantee it or your money back!
Renovations completed after 1992 can also be claimed, be it a new kitchen, bathroom or a new addition. You can still claim if the work was completed by a previous owner.
Renting your property either partially or fully furnished will also help maximise your return. We will pick up normal inclusions such as ovens, cooktops, dishwashers, clothes dryer, curtains etc as part of our standard report.
Your ACP report will include as standard:
- A life-time(40year) depreciation schedule that can be used for the life of your property
- Both the Prime Cost and Diminishing Value Methods of Calculation
- A Graph demonstrating the best method of claim
- Utilisation of the benefits of Low-Value Pooling
- A 100% first year claim for Low Value items (that is items under $300)
- A Tax deductible invoice
- For 2nd hand residential plant and equipment first leased after 9 May 2017 we will provide ‘Deferred Asset’ Schedules to assist your accountant in minimising capital gains tax implications at the point of sale of your property.