Buying a new property is expensive, and the repair and changes associated with the property add up to the expenses. It becomes quite heavy for your pocket to adjust with the post purchase expenses that come along with the new property. Wouldn’t it be a better idea if you could claim some returns, if not, at least could reduce some tax burdens?
If you are looking for this additional help then, you should take the professional help to prepare a tax depreciation schedule for you. You would be wondering, why your accountant can’t prepare this schedule report for you. If you are living in a property built after July 1985, then your accountant is not authorized to prepare this report. According to ATO, after introduction of 97/25 tax ruling clause, only the quantity surveyors are authorized to prepare the report for your property.
A tax depreciation schedule will help you to claim for allowances. It can be of two types, you can claim depreciation allowances for equipment and plants inside the property and also for the building costs. Plants and equipment can involve items as simple as the carpet, ovens, and dishwashers and so on. The building allowance directly includes the construction materials such as cement, concrete, bricks and more.
Research findings estimates that a new buyer usually spends a percentage between 2.5% to 4% every financial year, it is an only deduction that a buyer does not have to pay as an ongoing payment. With the help of proper quantity surveyors you can assure the maximum benefits on your tax saving, which can be up to several thousands of dollars per year.
The experts who prepare this type of depreciation schedule can easily prepare a schedule for a longer period of time such as for up to 40 years. All you have to do is to submit the schedule to ATO. After submission you have to initiate an update for any major changes in the property.
The cost of preparing the depreciation schedule depends on several factors; such as the location, size, cost incurred during construction and so on. The depreciation value varies from one property to another; approximately, it can be as low as $1500 per year and can go up to $15000 per year. Preparing the schedule would not take longer than 2-3 weeks and the best time to initiate the preparation of this report is as soon as the settlement is completed for your new property or as soon as the house is placed on rent. Even if you have renovated your property, or the previous owner done the renovations, you are entitled for this claim. The cost of tax depreciation is not too high, if you are making a payment at a go, it would be around $495 although, the cost might go a bit higher if there is any package for furniture.