Do you own a rental property in South West Western Australia?
A house, apartment or holiday rental, or a commercial property? Get even more value out of your property at tax time with a depreciation schedule.
You could save upwards of $10,000 in the first year on a residential investment property with a tax depreciation schedule.
Nightingale Property Inspections have partnered with SJB Quantity Surveyors to provide ATO compliant tax depreciation schedules for all property investors, ready to hand straight to your accountant at tax time.
The property will be surveyed by Nightingale Property Inspections to record all the depreciable assets, and then your schedule is prepared by SJB Quantity Surveyors.
This service is available for investment properties in Busselton, Margaret River, Augusta, Nannup and surrounding areas.
Why do I need a tax depreciation schedule?
A tax depreciation schedule will ensure that you’re maximising the cash return from your investment property. If you do not have a tax depreciation schedule you’re potentially missing out on thousands of dollars’ worth of legitimately claimable tax deductions available to you each year.
Your schedule will include allowances for capital works and plant and equipment where applicable, and is calculated using both the prime cost method and the diminishing value method. You only need to do it once and that schedule provides your accountant with the figures they can use to make tax deductions on your property for up to 40 years.
Even the cost of the schedule is fully tax deductible for you as the investor and is normally returned 5-10 fold in the first year alone! Have a chat to your accountant or financial advisor – you’ll likely be surprised at what a ‘no-brainer’ it is to have a schedule prepared for your investment property!
How do I book my schedule?
Complete our booking form here: Book Now.
We will get back to you with a quote and any questions we may have about your property, as well as our next availability to complete your site survey (see upcoming availability above).
Nightingale Property Inspections will then make an appointment with you or your property manager to visit the property and measure/record all depreciable assets. This on-site survey takes 30-60 minutes for an average size house and is the first part of preparing your schedule. This independent survey is the preferred process by the ATO and the best way to maximise your returns as our property inspector will record all depreciable assets and we know exactly what can and can’t be included.
This data is then used by SJB Quantity Surveyors to prepare your schedule. Your completed schedule and a copy of the site record will be emailed to you, ready to forward straight to your accountant.
The turn around time on the whole process is about 2 weeks.
What are depreciable assets?
This includes the ‘fixed’ or irremovable, structural elements of a building. These are commonly referred to as your building write-offs.
Examples are: wall construction, hard flooring, windows, doors.
Depreciation on capital works can be claimed on residential properties built after September 1987, and on commercial properties built after July 1982.
For older properties, the cost of any capital renovations and building additions completed after these dates (by you or a previous owner) may also qualify for inclusion in your schedule.
This is all of your ‘removable’ assets which are described by the ATO as assets which depreciate at a faster rate than the building.
Examples are: hot water systems, carpets, linen, curtains, ovens and furniture.
Apartment owners can also claim a portion of the allowances for the plant and equipment in the common areas of the strata.
Not all plant and equipment will be included in your schedule, depending on when you acquired the property and when it was first rented out, however our team will ensure these items are included wherever possible.
Plant and equipment items can only be depreciated if:
- They were acquired by you prior to May 2017 and if the property was also being leased prior to May 2017.
OR
- They were purchased as brand new by you at any time (even after May 2017) and while the property was available for lease.
Examples on plant & equipment depreciation:
- You purchased the property in June 2017. A hot water system was installed by the previous owners in April 2017. This hot water system is now considered ‘second-hand’ and will not qualify regardless of when the property was first leased.
- You purchased the property in June 2017, and advertised the place for lease straight away. New carpets were laid in the bedrooms in July 2017, just prior to your tenants moving in, so this carpet will qualify.
- You purchased the property in June 2017. You then lived in it yourself until June 2018 and you bought and installed a new oven and dishwasher during that time. You then started leasing the property in July 2018. The oven and dishwasher will not qualify for depreciation as the property was not being leased when the equipment was purchased.
- You purchased the property in March 2017 and it was leased straight away. All plant & equipment that came with the property when you purchased it is considered ‘second hand’ but because of the date that you bought the place and the fact you have been leasing it since then, it will all qualify for depreciation.