What is tax depreciation?

Tax depreciation on a residential or commercial investment property is a legitimate deduction against taxable income.

It works by allowing property investors to deduct a portion of the original costs of a Plant and Equipment and Capital Allowance on their investment property each financial year, over the effective life of that item.

The Australian Taxation Office recognises that the value of capital assets gradually reduces over time as they approach the end of their effective life. These assets can be written off as a tax deduction – known as depreciation.

Did you know 80% of investors overpay their tax income?

How to get the maximum benefit.

If you own an investment property (new or old, large or small), two areas of depreciation are available:

  • Depreciation on Plant & Equipment
  • Capital Allowance on Building Capital works

Different items within a rental property enjoy different rates of depreciation based on the effective life of the item.

Qualified quantity surveyors from DEPPRO have the expertise and knowledge to know which items are depreciable and how savings can be made.

To claim maximum tax benefits on your investment property the Australian Taxation Office requires property investors to complete a fully compliant Tax Depreciation Report.

depreciation reports

As a member of the Australian Institute of Quantity Surveyors, DEPPRO is qualified to produce ATO-compliant reports.

What can tax depreciation do for me?

Claiming depreciation allowances on your investment property will increase the value of your property by giving you greater return on your investment.

Depreciation allowances combined with additional negative gearing factors such as interest on your mortgage, repairs and maintenance can help you reduce your taxable income, pay less tax and improve you cash flow.

The savings can then be directed to other areas, such as your investment mortgage or other debt reduction.

DEPPRO can help you achieve maximum tax benefits from your investment property.

DEPRO Depreciation Professionals

Who is DEPPRO?

DEPPRO is Australia’s leading specialist in depreciation allowances for investment properties. Servicing all of Australia’s cities and regions, we focus solely on providing Depreciation Reports for owners of residential, commercial, industrial and leisure properties.

Our exclusive specialisation in depreciation ensures your needs are met with the highest level of personalised service. Ensuring a quick turnaround time, DEPPRO’s service is accurate and cost efficient.

Our service applies the latest Australian Taxation Office (ATO) rulings and interpretation to provide you with an optimised depreciable lifetime view of your property. We welcome and respect all request for assistance, regardless of how big or small.

DEPPRO’s depth of knowledge and understanding of Depreciation Tax Rulings provides you with maximum tax benefits for your investment property whilst complying with the ATO regulations.

DEPPRO keeps up to date with the latest changes in the Tax Act. As a leading authority advising on Property Depreciation matters, Paul Bennion, Managing Director of DEPPRO, formed part of the consultative committee, which advised the ATO on changes to Property Depreciation, which were effective July 2004.

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