Why landlords need a Depreciation Schedule

Do I need a depreciation schedule for my investment property?

The answer is YES!

A comprehensive depreciation schedule is an essential tool for every property investor as it helps to:

  • Reduce your taxable income
  • Increase your cash return
  • Put more money back into your pocket

 

While you may be used to claiming back on such items as council rates where you have paid money towards an item or service, depreciation is a “non-cash deduction” because it’s the ONLY deduction that you don’t have to pay for on an ongoing basis.

Depreciation can be worked out in two different categories; ‘plant and equipment’ – things like dish washers, ovens, carpet, blinds etc, and ‘building’ – structural elements like concrete and brickwork. You will need a qualified quantity surveyor to inspect your property and produce a bespoke property depreciation schedule.

Depreciation schedule is valid for 40 years (the lifetime of the building).

We recommend that you do update the report if you do any renovations, repairs or need to replace internal items.

Please let our property managers know if you need one for your investment property, the cost is $385 and the best part of it – is tax deductible!