Depreciation is a method of reallocating the cost of a tangible asset over its useful lifespan of it being in motion, says Wikipedia. Depreciation.com is one of the fastest growing Quantity Surveying companies in Australia. The company has a portfolio of qualified and experienced Quantity Surveyors with over two-decade experience in the Property Tax Depreciation field. The company’s quantity surveyors offer detailed online reports on tax depreciation covering the whole of Australia. Depreciation.com is available in Australia’s major cities like Sydney, Canberra, Darwin, Adelaide, Brisbane, Hobart, Melbourne, and Perth. Due to increasing demand for property investment services in Australia and in a bid to reach as many people as possible Depreciation.com is also available in a number of regional areas.
Depreciation was started by property investors with a wealth of experience in the industry and who are able to pass this knowledge and experience of Property Tax Depreciation to other established and aspiring property investors. The company is fully registered and licensed by the Australian Tax Practitioners Board. Depreciation works hand in hand with ATO members to be at par with any changes and amendments to the Australian Property Tax Legislation for purposes of passing the same to the client’s property depreciation within the shortest time possible.
Depreciation serves a large portfolio of with a wide range of needs and expectation. Some of the company’s customers include investment and finance groups, stand-alone property investors, tax agents and accountants and the entire property investment industry in Australia. The company offers personalized services tailored to meet the specific needs of each client at each stage of engagement. Additionally, the company’s surveyancing team is trustable and dependable in handling personal information and delivering a depreciation schedule that is fully compliant with the Australian Taxation Office (ATO).
The Australian Federal Government in 1985 introduced a new tax law giving property investors pay taxes based on the effective depreciation life of the property. Property tax depreciation, in this case, refers to the wear and tear of a structure and the fixtures. As a building grows in age, it tends to wear out. It is this wear that is called depreciation in accounting terms. This value loss can be claimed by the property owner in form of tax deductions. The property can be industrial, commercial, residential educational or health. As a requirement, property investors should incorporate a depreciation tax schedule for each property.
Property Tax Depreciation Schedule
The property’s Tax Depreciation schedule is an Australian Taxation Office compliance schedule that covers the property’s rate of depreciation throughout the lifetime of the property. Depreciation.com has detailed online versions of depreciation schedules which list all aspects of plant and equipment plus their corresponding costs of depreciation.
The tax deductions that can be claimed by a property investor fall into two broad categories. Capital Allowance which is also referred to as Division 43 is calculated basing the property’s construction cost. The costs include architectural, engineering, surveying and building costs. This does not, however, include the cost of acquiring the land as well as preparation of the site. This legislation however only covers residential properties with a construction completion date of after 18 July 1985. The deductions can also be in the form of Plant and Equipment Assets which is also called Division 42. These have a higher rate of depreciation compared to that of capital allowance. Assets that fall into this category are predefined by the Australian Taxation Office legislation and the rate is based on the life of the asset.
A depreciation report if a schedule highlighting the amount of money that a property investor can claim in form of depreciation tax every year. This report has a method statement which contains instructions on how the property was constructed. The report also has the diminishing value of the property; the cost of the depreciation as well as the property’s pooled items among other detail.
A depreciation report can be used to determine the amount of money that can be deducted to the property’s annual tax return. This will help save your time as well as money. The main biggest advantage of using a depreciation schedule is that you are able to know the exact amount of money deductible against the tax returns and covers the entire life of the property. The report can also be used to trace missed taxes from previous years. By using Depreciation.com, you are able to have a detailed online depression report done by experienced quantity surveyors.