Question 4

What is a Tax Depreciation Schedule?

It’s a fact of life - buildings depreciate over time. As a result, the Australian Taxation Office (ATO) allow you as a property owner to claim this depreciation as a deduction. This deduction can be claimed by anyone who earns income from the property.

Key facts about depreciation:

  • You can adjust your previous year’s tax returns and claim missing deductions from the ATO
  • Older properties - as well as newer properties - can have depreciation potential.
  • Claiming depreciation on your property means you pay less tax.

Maximising your depreciation schedule will help you to boost your rental profit. To obtain a depreciation schedule, we can help you to hire a quantity surveyor. You should, however, ensure a tax depreciation specialist like BMT Tax is used to prepare your depreciation schedule.