A tax depreciation report or schedule is critical for every prospective investor. It helps investors minimise the tax they're required to part with while enhancing ROI (return on investment) for their properties. If you choose to claim depreciation on your investment, you must have an investment depreciation report, which professional quantity surveyors can help prepare. These professionals document all depreciable components, including any valuable life each item still holds. Read on to learn some of the essential aspects that your tax depreciation report should include.
Typical Outdoor Items
A professional quantity surveyor can help you claim depreciation on typical outdoor items since they have distinctive value, as well. Standard objects in this category include fencing, landscaping objects, swimming pools or driveways, etc. Therefore, you should include all these items in your depreciation report. However, keep in mind that not all outdoor items on your property can qualify to be included in your depreciation schedule. That's why it's imperative to be up-to-date with the ATO (Australian Taxation Office) requirements regarding depreciation rates.
Common Indoor Items
When drafting your tax depreciation report, your expert quantity surveyor should also include your property's indoor items. As a property owner, you qualify to claim depreciation on your indoor assets and those you share in common with other units in your apartment building. Generally, indoor items can include fire safety equipment, heating, ventilation and cooling units, escalators, etc. Consider working with professional quantity surveyors to help prepare your tax depreciation report to reduce your tax liabilities.
Professional Construction and Design Costs
Another crucial element that shouldn't be missed in your tax depreciation schedule is the design and construction fee you paid the experts. All the costs involved in the construction work should also be reflected in your report. These costs will play a significant role in minimising your tax liabilities.
Scrapped Items or Objects
You might choose to renovate your property at some point, which, in turn, leaves you with scrapped items you no longer need. It would be wise to think carefully before dumping these items. That's because some of them can still possess a considerable residual value. You might be surprised to find yourself qualified to claim a final depreciation amount on scrapped items you thought had no value after renovating your property.
Conclusion
Consider including these four items on your tax depreciation schedule before submitting your application. Most importantly, work with reputable quantity surveyors for expert advice and professional support to prepare a comprehensive tax depreciation schedule.