What is Tax Depreciation?
Depreciation allowances are a valuable aspect of any property investment, reducing an investor's assessable income. Davis Langdon can help you identify and maximise these allowances and deductions, assisting you to significantly enhance the after tax return from your investment property.
Our Tax Depreciation knowledge is supported by many years of experience and vigilant research of current legislative changes and interpretive decisions by the Australian Tax Office and the New Zealand Inland Revenue Department. Combining this with our vast knowledge of the property and construction market ensures correct information is available to maximise these deductions.
Did you know?
Depreciation is available on all investment properties regardless of age.
In Australia, capital allowances are available if the property was built after certain dates prescribed by the ATO. However, should the property fall outside of these dates there may still be significant plant depreciation allowances to claim.
In New Zealand, depreciation cannot be claimed on land but all improvements to or on land may be depreciated. Buildings acquired before 1 April 1993 must be depreciated using Historic Depreciation Rates (IR267) but all buildings acquired after 1993 must be depreciated using General Depreciation Rates (IR265).
Our Capital Allowances (Aus) and Tax Depreciation Reports (Aus and NZ) will last you for the entire ownership of your investment property. Our reports need to be prepared only once, preferably as soon as possible after you purchase your property, to ensure you are getting the maximum deductions. If you add to or alter your property, you will need to have a new Tax Depreciation Report that incorporates these changes to your asset.
By engaging Davis Langdon to prepare your Tax Depreciation (Aus & NZ) and Capital Allowances (Aus) Schedule you are ensuring that highly trained and specialised staff will be preparing your report, backed by a company with 50 years of continuous service in Australia and New Zealand.
Our reports are thorough and comprehensive and encompass a detailed site inspection of your property by a qualified Quantity Surveyor.
In addition, specific Australian reports include:
- identification and maximisation of Division 40 Plant Allowances
- preparation of a construction cost estimate for the purposes of determining Division 43 Capital Allowances
- inclusion of latest legislation and ATO interpretive decisions
Reports specific to New Zealand include:
- indentification of Asset Categories and Industry Categories to maximise depreciation allowances
- separation of Building Fit-Out costs from Building cost to maximise depreciation allowances
- assessment of the cost of buildings when land and buildings are purchased but the price does not specify the cost of the buildings