Melbourne Market Research

Property investment uses tax depreciation

Property investment is big business and one that can very quickly go south if the property owner does not manage that investment as well as humanly possible. One way to do that is to be aware of the legitimate tax claims that can be made on the property. One that is often forgotten about by many is depreciation, as the structure and fixtures will deteriorate over time and potentially lessen the value of the building. As such, it is a wise idea to contact a reputable quantity surveyor in Melbourne and have them prepare a tax depreciation schedule that will ensure that you don’t miss anything that can be legally claimed.
The schedules for tax depreciation are usually broken into two separate components, which are as follows:

An investor will often ask how much they can reasonably expect to claim on each of their buildings, in regard to the life of the building but that is a question that is impossible to answer without the property being thoroughly inspected by a quantity surveyor. There are all kinds of different elements, such as age, building type, what it’s being used for, and more all coming into play. It also has to be decided whether the Diminishing Value or Prime Cost method of depreciation is used.
In order to fully maximize the tax depreciation claims that can be made, the owner of the property needs to take the time to find a quantity surveyor that has a high level of knowledge and experience in both construction costing and tax depreciation legislation. Our team at Asset Economics, tax depreciation specialists in Melbourne is ready to help you. As a property owner what can you reasonably expect from a qualified quantity surveyor? Here are a few things that should be included in the service:

As you can see, it is a fairly complicated process that really should be handled by a quantity surveyor with experience and knowledge of the tax depreciation schedule. Asset Economics are one of the best quantity surveyors in Melbourne and are more than up to the task of preparing your tax depreciation schedule.

Matthew Stanely, managing director at Asset Economics