Melbourne | Sydney | Perth | Canberra | Brisbane | Darwin | Tasmania | Adelaide

Frequently Asked Questions

Have questions about our tax depreciation services? Our FAQ page provides clear and concise answers to common inquiries, helping you understand how we can assist you in maximizing your tax benefits. For any additional questions, feel free to contact our expert consultants.

FAQs

Can I get a free quote?

Certainly, we invite you to utilize our complimentary quote and estimation form.

Can I claim depreciation on a second-hand property ?

Among the multitude of reports we’ve prepared, Tax Schedule Depreciation Schedules frequently encompass existing and second-hand properties. These assessments include evaluating depreciation for both second-hand plant and equipment and the building itself, even if the properties are aged. The favorable news is that the Australian Taxation Office (ATO) permits property investors to claim significant deductions, even on second-hand properties.

For residential property investors seeking to claim depreciation on second-hand properties, the criteria hinge on whether the property qualifies for Division 43 building depreciation. Investors are eligible to arrange a depreciation report for claims if the property meets the Division 43 standards, which allow for building depreciation claims on properties constructed after September 15, 1987, or those that underwent renovations completed after February 27, 1992.

For properties acquired before May 10, 2017 (referred to as the exchange contract date) and have been rented out since July 1, 2017, investors qualify for depreciation claims on plant and equipment, categorized as Division 40 of the Income Tax Assessment Act 1997. Further details on Division 40 can be found here.

In cases involving properties purchased after May 9, 2017, which do not meet the eligibility criteria for plant and equipment depreciation or building depreciation, investors can engage Tax Schedule Depreciation to investigate potential renovations that may have been completed and not previously identified, with Tax Schedule’s assistance.

Can I claim Division 40?

In light of legislative changes enacted in 2017, the claimability of plant and equipment expenses (Division 40 – encompassing items like lighting, blinds, appliances, and flooring) is no longer universally applicable. Essentially, second-hand plant and equipment are no longer eligible for residential tax depreciation claims. Below are scenarios where Division 40 cannot be claimed:

Purchasing a second-hand property and not installing any new plant and equipment in it.
Acquiring a brand new property and residing in it (for any duration) before converting it into a rental property.
Introducing new items into your property while residing in it before transitioning it into a rental.
It’s important to note that corporations still maintain the ability to claim Division 40 under any of these circumstances.

If you have purchased a second-hand property with the intention of renting it out and have introduced new plant and equipment, such as carpet or new appliances, only these newly added items will be eligible for tax depreciation claims. The existing items will be excluded from the depreciation report.

In instances where Division 40 cannot be claimed, you may still be eligible to assert Division 43 (capital works) deductions. Therefore, it may remain advantageous to acquire a depreciation schedule from Tax Schedule. If your report concludes that no Division 40 claims are possible, your report will feature a capital works schedule rather than a diminishing value or prime cost schedule.

Can I retroactively claim depreciation for prior years ?

Tax Schedule offers the capability to retroactively generate a depreciation report, accommodating your specific needs in terms of time frame. Nevertheless, to ascertain the extent to which you can amend your tax returns to claim depreciation for previous years, we recommend consulting with your accountant or tax advisor for precise guidance.

Is it possible to claim tax depreciation on renovations carried out by previous property owners ?

Indeed, you have the option to claim tax depreciation on renovations executed by prior property owners, provided they adhere to specific criteria, notably being finalized after February 27, 1992. To initiate the tax depreciation process under Division 43 building depreciation, it is imperative to ascertain the precise date of renovation and other pertinent details, which can be efficiently verified with the assistance of Tax Schedule. It is important to note that your claim is contingent on the remaining value of the renovations and not their original cost.

Do I require the services of a quantity surveyor for depreciation assessment ?

The Australian Taxation Office (ATO) acknowledges quantity surveyors as individuals with the requisite qualifications to accurately assess and ascertain the construction costs of your rental property, including plant and equipment. At Tax Schedule, we leverage insights gleaned from a vast database of prior depreciation schedules we have meticulously prepared for numerous investors. Our aim is to secure the maximum tax deduction possible for you, catering to various scenarios such as newly constructed properties, second-hand properties, and even properties with minor renovations.

Tax Schedule comprises a team of dedicated property investors who have evolved into qualified tax agents and quantity surveyors. Our profound understanding of the needs and preferences of property investors like ourselves enables us to meticulously evaluate every square meter of your property, ensuring you receive the most favorable tax deductions achievable. This is what distinguishes Tax Schedule from other service providers, including your accountant.

Is it necessary to procure a schedule annually?

No, you do not need to acquire a new Tax depreciation schedule each year. The schedule which is designed by Tax Schedule is to serve you for the duration of your property’s utility as an investment.

Do you offer tax depreciation schedules for commercial properties ?

Indeed, we provide tax depreciation services tailored to commercial properties.

Do you offer tax depreciation schedules for properties located outside of Australia ?

Regrettably, we do not extend our services to international properties outside of Australia. However, we do cater to properties situated within Australia, spanning major cities such as Sydney, Melbourne, Brisbane, Adelaide, Canberra, Hobart, the Gold Coast, and regional areas.

Do you match guarantees or provide estimates?

Absolutely, we have the capability to match or potentially surpass any guarantees offered by other quantity surveyors, provided we are furnished with the property address and confirm the legitimacy of the guarantee.

How can I determine if my property is eligible for depreciation?

Not all investment properties qualify for depreciation, leaving investors uncertain about the necessity of obtaining a depreciation schedule. To alleviate this uncertainty, a few straightforward questions can be addressed. The key determinants for depreciation eligibility often revolve around the property’s construction date, whether it was built before or after September 1987, and whether it is categorized as brand new or second-hand.