Frequently Asked Questions about Tax Depreciation Schedules

What is a Tax Depreciation Schedule and why do I need one?

If you own an investment property and want to deduct depreciation allowances against your taxable income, you need to arrange for the preparation of a tax depreciation report by a qualified quantity surveyor.

Capital expenditure on buildings, plant and equipment used for investment or commercial purposes are deductible as building allowances under the Income Tax Assessment Act.  In order to claim for these allowances on your tax return an assessment of the cost of these items at the time of construction must be carried out and certified by a quantity surveyor.   If your property was constructed before 1987, not all the building allowance and depreciation benefits apply.  We will discuss that with you during the inquiry process to ensure getting a depreciation schedule prepared makes sense for your property.

The tax depreciation schedule included in our report will provide a schedule of the building costs (which can be written off at a rate of 2.5% per year) and a schedule of sundry depreciable items which include carpets, kitchen appliances, blinds, and various other items which can be written-off over varying periods of time depending on the item.   Your tax accountant will use this information to calculate your deductible depreciation allowances on your income tax return.  A tax depreciation schedule will translate into significant income tax savings for you on an annual basis.

What is included if I decide to have Jeffress Associates prepare a tax depreciation schedule for my property?

Our services in completing a tax depreciation report include:

  • Obtaining a copy of the property plans from the relevant Council,
  • Performing a physical site inspection of your investment property,
  • Identifying depreciable building and sundry item costs associated with your investment,
  • Preparing a formal report scheduling out this information that can be used by your tax accountant in preparing your annual income tax return,
  • Being available for any questions your tax accountant may have when using the information to prepare.

What do I need to do to have Jeffress Associates prepare my tax depreciation schedule?

  1. Provide us with the details of your investment property so that we can give you a quoted price to perform the required report.  You can do this by using our On-Line Inquiry Form, downloading a Quote Form (in pdf) and sending it to us, or you can simply give us a call.  
  2. Once you have a quoted price, complete and sign the Confirmation Form.  Your confirmation includes an Authorisation Form that must be signed by you and which will be sent to your Council to obtain plans and other relevant details about your property for the preparation of the report.
  3. Coordinate with your property manager and/or tenant to provide Jeffress Associates access to your investment property for the site inspection.

  4. Make yourself available, by telephone, as required by the quantity surveyor to answer questions during the preparation of the report.