Tax Depreciations

As your investment property ages in time, the building itself depreciates in value. However the overall value of your investment increases; this is due to your land increasing in value - the house or unit on the land just gets old and tired.
Your property's depreciation is considered an investment expense, making it tax deductible. In other words, you can reduce your taxable income, and therefore pay less tax. This equates to a significant tax refund at the end of each financial year, or as arranged by your accountant.

What is a Tax Depreciation Schedule?

A Tax Depreciation Schedule is a report that details the depreciation amount for each asset in each financial year to be used as a tax deduction.
This schedule is then to be provided to your accountant, for him/her to decipher which scenario best suits your situation.

How this affects you as an investor!

• As an investor you can maximise your taxation benefits
• Developers and real estate agents will highlight taxation entitlements as part of their property sales and marketing campaign
• The cost of preparing a Depreciation Schedule is fully tax deductible
• The schedule provides a 10 year forecast of depreciable items.