Depreciation
is something that benefits your bottom line when it will be tax time. Many
would take the time to claim the depreciation of their investment property
against their taxable income. In some way, it can apply to claiming wear and
tear on a car you bought and used for income-producing purposes.
Seasoned
property owners usually would take depreciation into account before they buy
anything for their next investment. It is also applicable to anyone who
purchases a property of income-producing purposes. They are entitled to
depreciate the building and the items therein against the assessed income.
Depreciation on property
Basically,
this is a tax break that allows investors to offset their investment property’s
decline in value from their taxable income. Australian tax laws lets investors
claim tax deductions on both the decline of value of their building structure
and the items permanently fixed to that property.
Also
allowed is the decline in value of plant and equipment assets found inside it.
This helps the taxpayer pay less taxes, it is also considered non-cash
deductions. This would mean that the taxpayer need not pay for them on an
ongoing basis.
The
deductions are built into the purchase price of that property. (All other
deductions need to be paid on an ongoing basis.)
With
regards to age, if your residential property was built after July 1985, you can
claim your depreciation. Commercial and industrial properties are subject to varying
cut-off dates.
Quantity surveyors
Accordingly,
only quantity surveyors are appropriately qualified to estimate the
construction costs when those costs are unknown. While accountants can offer
general advice on other aspects of tax depreciation, they are not qualified to
do estimates on property construction needing highly technical expertise.
Quantity
surveyors are considered specialists in the accurate measurement construction costs.
They have the education, experience and training to provide reliable figures
with which property tax depreciation is based.
Your
trained quantity surveyor will ensure that all depreciable items are noted and
photographed. This is a guarantee that you won’t miss out on any deductions. In
the event of audit, the documentation can be used as evidence.
It’s
very common for quantity surveyors to liaise directly with the tenant or
property manager in order to cause minimal disruption to the tenant. The best
time to get a quantity surveyor to inspect your property is immediately after
settlement and hopefully just before the tenant has moved in.
Costs
The
cost of preparing your tax Brisbane property depreciation schedule varies according to several
factors, including the type of property you have already bought, its location
and size.
Most of
the leading quantity surveyors offer a money back guarantee to save you twice
your fee in the first year, or they give you the report for free.
Differences
Every
property is different and there are many factors that must be considered when
preparing a property deprecation schedule. Also, there are many depreciation
calculators on the market which anyone can pick out for use.
The schedule
of your Brisbane property depreciation will
take approximately 2-3 weeks to complete, depending on the time that the quantity
surveyor can inspect your property without delay.
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