A Property Investors Guide To Tax Depreciation Schedules

March 16, 2021

A tax depreciation schedule is something that every property investor should be aware of in order to take full advantage of depreciation deductions that are available to them. Unfortunately, research shows that over 70% of investment property owners don’t buy a tax depreciation schedule, resulting in thousands of dollars worth of deductions that end up lining the pockets of the taxman instead. Today, we dive into exactly what a tax depreciation schedule is and why you need one as a property investor, so read on to find out more. Check out Tax Depreciation Schedules.

Understanding Depreciation

Before diving into exactly what a tax depreciation schedule is, it is important to understand exactly what depreciation is. In a nutshell, depreciation in value of an asset is a natural occurrence as time progresses. Wear and tear and other factors lead to a depreciation in value which investors stand to benefit from. The Australian Taxation Office (ATO) allows owners of brand new income-generating properties to claim this depreciation as a tax deduction.

What Deductions Am I Eligible For?

When it comes to deductions, they can be divided into two distinct categories: division 43 capital works allowance and division 40 plant and equipment depreciation.

Capital Works Allowance - The capital works allowance is able to claim for wear and tear. This occurs to the structure of the property. Generally, any residential property that was built after the 15th of September 1987 will entitle its owner to capital works allowance at a rate of 2.5% per year for up to forty years.

Plant and Equipment Depreciation - Plant and equipment depreciation can be claimed for the removable fixtures and fittings within the property.

The Tax Depreciation Schedule

Now that we understand depreciation, let’s talk about tax depreciation schedules in Adelaide. The tax depreciation schedule is a legal document that is drawn up by a licensed quantity surveyor and contains information about depreciable assets that are found within your property.

When Should I Purchase My Tax Depreciation Schedule?

Maximise your annual deductions. It is important that you purchase your depreciation schedule prior to the end of the financial year. Own the property for an entire financial year? This is order to be eligible to claim a partial deduction.


Failing to organise your tax depreciation schedule can result in the loss of thousands of dollars. I hope you learned about Tax Depreciation Schedules. Finally, check out other articles like this on our frontpage.

Categories: , ,  
Urban Splatter

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
February 21, 2024
Houston's Housing Horizon: Trends and Predictions for Homebuyers and Investors

The Houston real estate market is a canvas of opportunity, diversity, and potential. As one of the most dynamic and evolving markets in the United States, it offers a unique blend of challenges and rewards for homebuyers and investors. This article delves into the current trends shaping Houston's housing landscape and offers predictions that could […]

Read More
February 21, 2024
How to Buy Legitimate Amazon AWS Accounts Online

  Buying an Amazon AWS account may be tricky if you don't know where to look. There are many websites out there claiming to promote AWS bills, however, how do you already know they are valid? In this guide, I'll walk you through the manner of competently and securely buying actual AWS bills online. We'll […]

Read More
February 21, 2024
How to Build a Shed in Your Backyard?

Even if you don't believe you need one, you'll want a storage shed since your house never has enough storage. The project does not have to be costly. Building a backyard storage shed yourself yields a better result than hiring a contractor or labor. Why Buy a Storage Shed? Tool, garden, and storage sheds. No […]

Read More
Welcome to Urban Splatter, the blog about eccentric luxury real estate and celebrity houses for the inquisitive fans interested in lifestyle and design. Also find the latest architecture, construction, home improvement and travel posts.
© 2022 UrbanSplatter.com, All Rights Reserved.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram