Have you remembered to claim for property depreciation?

If you have any investments in property or other assets, you will understand the value of managing your tax affairs properly. Building a strong property portfolio takes time, and if you want to earn from your investments without handing over more than necessary to the tax office, you can often benefit from outside help. Bringing in a team of accountants can help to keep your affairs in order. They can advise you about capital gains tax, ABN applications, property disposal, and perhaps, most importantly, tax depreciation.

Why understanding depreciation matters

Minimizing your tax obligations can make the difference between enjoying a successful investment and surrendering large amounts of your money to the ATO. Professional tax advisers will understand tax depreciation. They can prepare a tax depreciation report for you and demonstrate what tax deductions may apply to your situation. They will know how to draft a tax depreciation schedule that identifies how wear and tear have occurred in the buildings that you own. If you can accurately determine the level of wear and tear suffered by your properties, you will be able to class it as a tax-deductible expense.

Calculating tax depreciation

The tax office won't allow you to guess the depreciation figures. The wear and tear must be calculated and listed in a tax depreciation report that the ATO can accept. Your tax advisers will prepare this report for you so that the tax office is satisfied and you can claim all relevant deductions.

Choosing your tax advisers

Choosing the right tax advisers can help you make a substantial saving each year, so you must take the time to make the right choice. Ideally, look for a company that can demonstrate success working with clients like you. Find a company whose clients have similar portfolios to your own, ask them for testimonials from clients they have helped in the past to restructure their finances and reduce their tax bills. In particular, ask them about their approach to depreciation and what experience they have in using a tax depreciation report to keep tax costs to a minimum.

Finally, look for a company that takes an individual approach to your tax affairs. Everyone is an individual, and the best results will always be achieved by approaching every case uniquely. If the company want to add you to a pre-existing plan, ask them for their reasoning and if necessary find a company that is happy to take a more bespoke approach. Reach out to a professional for help with a tax depreciation report.