Sunshine Coast Tax Depreciation
ACCORD Quantity Surveyors

Tax Depreciation Schedule Sunshine Coast

Tax Depreciation Schedules on the Sunshine Coast for an investment house, unit, apartment, shop, shed or office. Contact Bobby for tax savings.

For those who live in the Sunshine Coast and own an income producing property, you can take advantage of the depreciation of assets when you schedule next your tax return. The assets that qualify are not part of the rental property structure itself but instead include items such as appliances which do lower in value over time.

What Qualifies for Tax Depreciation?

You can only list qualified assets for tax depreciation purposes. This means that the very land itself, trading stock, and intangible assets such as your business brand or reputation does not count. However, qualified assets will include the following.
- Not Part of the Building Structure
- Not a Permanent Fixture
- Will Need to Be Replaced at Some Point
- Has a Separate Identity

Once you identify such items on your property, the next is to determine how to claim it on your tax forms. You may either choose your own estimate of the asset’s life value, or you can use the determination by the Commissioner for such items. Plus, you must keep records to demonstrate how the decline in value is worked out over time.
Check our frequent questions for answers on Tax Depreciation.

How to Determine Depreciation?

All assets depreciate differently over time. For assets that cost more than $300, you can claim deductions over its effective useful life which begins from the moment you either purchase the property and inherit the assets within or buy the asset for the property.

Plus, the depreciation only applies to the item being used by the tenants of the property and not your own personal use. For example, if you purchased and installed a refrigerator on 1 January and used it for yourself for the first month, the calculation of depreciation you make must account for its reduced value caused by your personal use.

For assets that cost under $300 may be claimed as an immediate deduction for the income year in which the asset was used. However, you cannot claim separate assets that individually cost less than $300 which are used together, such as a dining set.

All qualified assets have a predetermined effective life which is listed on the tax schedule. This means that you base your calculations of its stated effective life starting from the time it is installed and used by the tenants on the property.

Calculating the Depreciation for Tax Deductions

You may use either the diminishing value method or the prime cost method. The former is based on the decline in value each year as a constant portion of the remaining value of the item. This means you can claim higher deductions early on over its effective life.

The prime cost method is a uniform amount over the effective life of the asset. Which means that you claim less in the early years compared to the diminishing value method, but the claim is constant over its effective life.
Sunshine Coast rental property owners may save a considerable amount on their next tax return when they include depreciation of qualified assets. Be sure to schedule an appointment with a qualified tax professional to discover what you can list as part of the property’s depreciating assets.

Your investment property may be filled with tax deduction possibilities.
Contact Bobby for clarification. The tax depreciation expert on the Sunshine Coast.