Depreciation lets investors claim a portion of the cost of a building and its fittings against rental income over time. A quantity surveyor prepares the report most accountants rely on to calculate these claims correctly.
What depreciation is
Buildings wear out over decades, and so do items like carpets, hot water systems and appliances. Australian tax law may allow owners to claim capital works and plant and equipment depreciation, subject to eligibility and the rules applying to second-hand residential properties.
Who can prepare the claim
A quantity surveyor estimates the construction cost and identifies depreciable items. The resulting schedule is used by your accountant at tax time and can often be obtained for properties you already own, sometimes with claims able to be revisited.
Get the report before tax time
Order a depreciation schedule after settlement and share it with your accountant before preparing your return. Keep records of purchase costs and capital improvements, as accurate documentation underpins every claim.