Depreciation - Is it worth it?

Is your investment property tax return maximised?

Many property investors can reduce their taxable income and improve their cash flow by simply getting a Depreciation Schedule on their investment property.

Our research shows that an estimated 70% of people currently entitled to tax deductions relating to an investment property that they own are not be in a position to make a claim?

Why you may ask? Well, put simply, they do not have the supporting documentation to justify a claim or they simply did not know that they were eligible.

That’s where Brothers & Newton Opteon can provide the solution.

As part of Australia’s leading independent property services provider, at the Opteon Property Group, we are able to provide Depreciation Schedules on all property types.

If you or your clients haven’t been taking full advantage of the legislation and your eligible deductions, 2 years of prior claims can even be made retrospectively.

Our services are:
• ATO compliant
• Thorough & Accurate
• Available Australia wide

Remember most property constructed after 17 July 1985 (residential) and 20 July 1982 (non-residential) are eligible for the construction write-off allowance;

Any buildings, regardless of its age, will attract depreciation and the building write-off allowance if refurbishment works have been undertaken since 17 July 1985 (residential) and 20 July 1982 (non-residential);
We provide an easy to use document that will allow your accountant or tax advisor to easily extrapolate the information they require for your annual tax return.

Your Questions Answered

Q: As an Investor, what do I need to justify a claim
for Depreciation from the ATO?

A: You will need a Capital Allowance (Depreciation)
Schedule which outlines all eligible building and
fixtures within your property.
The Tax Act specifies that this schedule or report
needs to be completed by a suitably qualified
professional. Quantity Surveyors are specified in
the Act as being one of the few professions that
can prepare these documents. All reports
completed by Opteon are done so by a qualified
Quantity Surveyor. Our fees are also fully tax deductible!

Q: Will my property be automatically eligible?

A: Most properties constructed after 18 July 1985
are eligible for the Building and Construction
Write-off Allowance.
Eligible fixtures (described as ‘plant’ in the Tax Act)
such as stoves, hot water services, heating units,
carpets and drapes also attract a different rate of
depreciation. At Opteon we summarise all eligible
items in our detailed reports.

Q: What if I have not been claiming depreciation?

A: There are provisions in the Tax Act that allow you
to claim up to four years of missed depreciation.
You should check this with your accountant or
financial advisor.

David Hanlon
Certified Practicing Valuer
M | 0419 383 915

Area Manager (Tas) Depreciation Schedules
BROTHERS & NEWTON-OPTEON
T | 03 6224 2343 F | 03 6224 2331
www.independentvaluers.com.au