Do I need a Tax Depreciation Schedule?

What is it?

What can I claim?

If you own an investment property then YES, you will need a Depreciation Schedule

• Ideally you should have one organized straight after settlement or the completion of a new build. A depreciation schedule is a report that outlines all available tax depreciation deductions for a residential investment property or commercial building. Most properties, new and old, have depreciation available.

• The property depreciates over time, as the property ages and the building’s structure and assets within start to wear out.  The Australian Taxation Office (ATO) allows owners of residential rental properties to claim this depreciation as a tax deduction.  Depreciation can be claimed under two categories – capital works and plant and equipment assets. So it’s best to consult with your accountant to make sure you claiming within the guidelines.

• Your accountant can arrange to have a depreciation schedule complied otherwise you can arrange to have this preformed by a specialist and then hand the report over to your accountant at tax time.

For more information visit https://www.bmtqs.com.au/bmt-insider/claiming-depreciation-on-your-rental-property/

At BlueChip Rentals we are always here to help steer you on the right path by protecting your investment. Call us for more advise.