Claiming your Tax Deductions

The Perth depreciation schedule, like any depreciation schedule, is an important document needed in order that you can have a claim on tax deductions on your taxable properties. Many investors are not aware of the tax deductions based on the depreciation of these properties.

With this depreciation, you would need to organize a depreciation schedule during the purchase of the property so you can begin the claim of the tax break as soon as possible.

Depreciation

Basically, depreciation occurs when the item’s worth becomes less over time because it is used and eventually wears out. In tax deduction, depreciation is one method of allocating the cost of the item over the span of its useful life.

For instance, if your property has a value of $1,000 and has a ten-year life, you can claim a $100 against your taxable income for 10 years on that particular item. You are only allowed to claim depreciation on certain items against your taxable income.

Types

There are two types of depreciation tax deductions on which are allowed to claim.  The first one is depreciation on plant and equipments. The equipments are those items within the building (air conditioners, carpets, ovens, hot water heaters, etc.)

The other one is depreciation on buildings (called building allowance) which refers to the construction costs of the building (concrete, brickworks, labor, etc.).

Schedule

When making a tax claim for depreciation, you would need a report that identifies all the things you need to claim against your tax and the current value of each of these items. The report needs to separate all the different items into two categories listed, and showing that each item depreciates at a different rate.

Each of the properties is different from the others and will contain a wide variety of different items falling into their own categories. The amount of tax benefits you will receive depends on the tax property you bought.

(Property owners usually chose properties that will give them the most depreciation benefits.)

Getting the schedule

After you purchased a property, you need to have a property schedule soonest possible time. This action is actually to maximize your tax benefits having started the earliest time (when you bought the property) of the schedule.

If you haven’t gotten your depreciation schedule when you first bought your property, you can still get one now so you can begin the claim of your deductions.   

Quantity surveyor

When you buy a property, the assets within the property are not itemized. In addition, the government will not take your word for the value of the items. You cannot create a depreciation schedule by yourself.

You need to employ the services of a qualified quantity surveyor who will do the thorough inspection and identify what can be claimed and make valuations in order to create a depreciation schedule for you.

If you had bought a brand new property, the depreciation schedule is easier because the value can be easily determined. If you have an older property, things are more complicated which becomes the reason why you would need a reliable and qualified professional for the assessment.