Frequently Asked Questions

As Tax Depreciation and Capital Allowances is a relatively obscure section of the Tax Act, we have listed below some commonly received questions from potential clients

 

My Accountant has told me I need a Depreciation Schedule. Can you tell me what it is and why I need one?

Further to the information noted on our website, Redline Quantity Surveyors strongly recommends that even the most savvy property investors familiarise themselves with the following Australian Taxation Office publication:

https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Rental-properties-2021.pdf

This easy to read publication focuses solely on Rental Properties and best describes not only depreciation but all the other tax deductions that could save you thousands over the duration of your investment.

 

My property is 10 years old. Is it worth depreciating?

Absolutely. If you entered into a contract prior to 9 May 2017 you will be entitled to claim both Division 43 items (building aka capital allowances) and Division 40 items (plant and equipment aka assets).

If you entered into a contract post 9 May 2017 for an existing 10 year old property you will be entitled to claim the Division 43 items, however, you will not be entitled to claim depreciation on the existing Division 40 items.

If you have any concerns about whether or not the preparation of a Tax Depreciation and Capital Allowances Schedule will be a worthwhile exercise for your property or, if you have any concerns in relation to changes to the Legislation, please phone us to discuss.

 

My property has been renovated. Can I claim the renovation costs?

Absolutely. Where the renovation costs are unknown, Redline Quantity Surveyors will prepare an estimate and include within your Schedule.

 

Some of your competitors are quoting considerably higher fees. Will I get more depreciation from someone else?

No. Tax Depreciation and Capital Allowances Schedules do not come in varying forms. They are governed by Australian Taxation Office guidelines, which are not open to interpretation and cannot be varied to produce better results.

Redline Quantity Surveyors like to pass the savings on to the customer. The more Tax Depreciation and Capital Allowances Schedules you do, the more efficient you become and no other company in the region prepares as many Schedules as Redline.

Whether it is saving time and money with access to our database of historical information or simply because we are inspecting a number of properties in your area, these and other efficiencies, are directly reflected in our competitive fee structure.

 

I want to rent out my principal place of residence. Can I claim depreciation?

Yes, depreciation deductions are still available.

Please check with your accountant and/or tax advisor during the transition to determine whether you require a property valuation for future capital gain calculations.

 

How much will a Tax Depreciation and Capital Allowances Schedule cost me?

To obtain a free quote, simply click here and we will provide you with an obligation free quotation customised to your property.