A Tax Depreciation Schedule is a natural extension to the work accountants perform for their clients.
An Asset Reports Tax Depreciation Schedule is prepared for your client, in a form that can be easily included in your client’s annual tax return. The ATO also allows adjustments for two prior years, meaning the cumulative tax benefit to present-day may realise additional significant financial benefits for your client.
Asset Reports is an Australian business, with our property inspectors and ATO-approved, TPB-registered QS working alongside each other. We cover the entire metro area of Sydney and Perth, and have more regional reach than our competitors. All this adds up to maximum convenience for you and exceptional value to your clients.
Why are we the best team for the job?
- We always attend every property we work on – physical inspections identify more depreciation benefits than remote, “desktop” assessments and avoid client self-assessment exposure.
- We do the work, rather than requiring your clients fill out a 10-20 page questionnaire.
- We attend the property within 5 days of a booking, and complete the report within 7 days of the inspection – compared to up to 3 months by others allowing you to close your client files earlier.
- Our property inspectors and TPB-registered QS work alongside each other, and work together on your client’s property. This maximises the return to your client, and minimises any ATO exposure otherwise introduced by remote, questionnaire-based assessments.
Recommending Asset Reports to your clients is a high return, low risk proposition. Asset Reports has been preparing client investment property reports, on behalf of real estate professionals, for nearly a decade. We know the quality of our work is a reflection on you, and we treat this very seriously. We honour the following commitments you make to your clients;
- The quality and accuracy of the report
- The cost effectiveness of the service
- Fast turn-around time
Asset Reports completed a Tax Depreciation Schedule for a tax accountant, as his own rental property. As always, Asset Reports prepared the schedule in an accountant-ready format, easily incorporated in the property owner’s annual tax return. The rental property was brand new, and the accountant was preparing his tax return for the end of the financial year, including the attributable depreciation associated with his rental property.
Our client rang to seek clarification on the difference in the first year depreciation value he calculated on the property, compared to the depreciation value that Asset Reports calculated.
Where we helped
Our core business is understanding the myriad of rules and regulations set out by the ATO for calculating property-related depreciation. The client was a highly proficient, experienced tax accountant, although not a property specialist, and sought Asset Reports advice to clarify the calculated differences.
Our client expected to apply a single depreciation rate of 2.5% p.a. (40 years life) across the entire cost of the property. The ATO allows a 2.5% depreciation rate for the building structure, but allows depreciation rates up to 100% (e.g. 1 year life) for other selected areas of the property.
By applying a single 2.5% on the entire property, our client calculated a first year depreciation rate of ~$6,000. This is significantly less than the actual deductible value allowed by the ATO.
The Real Kicker
Asset Reports applied the many various depreciation rates allowed by the ATO for property-related depreciation across the various asset sub-classes. By doing this, Asset Reports enabled accelerated depreciation of the non-structural areas of the property, realising a total first year tax deduction worth more than double our client’s own calculation.
First year deductions calculated by the client:
First year deductions calculated by Asset Reports: