AU Tax Depreciation Quantity Surveyors is committed to assisting Commercial Property Investors in maximising their depreciation entitlement on their investments by providing ATO-compliant Tax Depreciation Schedules.
The principle and method for commercial depreciation is same as residential. The main difference is the effective life of the assets. For example, the effective life of carpet in commercial properties is shorter than residential ones as there is more wear and tear on it.
The most common error made by commercial property investors is failing to update the tax depreciation schedule. Most new buyers use the previous owner’s tax depreciation schedule after their purchase. They don’t know that by doing this, they will lose heaps of tax benefits in the end because the purpose of each tax depreciation schedule is to maximize the owner’s depreciation entitlements in the first a few years after the settlement. Therefore, after a few years, the residual value on most assets becomes zero or close to zero even though its current value is not.
By updating the Tax Depreciation Schedule, we can apply the current market value on the assets and use it to update the schedule. As a result, all assets assume a new effective life from the settlement date of the property and their values are increased to match the current market values. The owner will then get the maximum tax deductions from the new updated tax depreciation schedule.
We cover the whole country, providing professional on-site inspection and other free additional services, such as on-call estimates and report updates (conditions apply).
Every residential property investor can maximise wealth through tax depreciation.