Tax Depreciation Valuation Services

Tax Depreciation Valuations:

Do you have an investment property earning rental income?
If Yes - A tax depreciation valuation for the investment is essential for your tax deduction entitlements with depreciation allowances. This is used by the your register tax agent/accountant, to prepare the tax depreciation schedule, in your tax return.


Best possible tax refund or outcome.


Tax Depreciation Valuations cover your construction costs, any capital improvements and fixtures with depreciation allowances over time permitted under the Australian commonwealth income tax legislation, to be used by your Accountant/Registered Tax Agent.


Tax Depreciation benefits. Depreciation is the capital value decline over time with its age and effective life, before it is written off. Since the late 1980s, in most cases, the Income Assessment Act legislation with the Australia Taxation Office rules, allow the capital value (does not include land or land related value) can be written off 2.5% per annum over 40 years. This can be either the diminish or prime cost methods, in which a tax accountant and their tax depreciation assessor, can determinate which method is best for their client.


New properties are favoured for property investors, as the Tax Depreciation benefits in the property, when new, is in the bulk of the fixtures, such as light fittings, floor coverings, tapware, air conditioning, curtains/blinds, cooktop/oven/range hood, hot water service, dish washer, alarm system etc. The Income Assessment Act legislation with the Australia Taxation Office rules, have a table in place that determined the number of effective years the fixture can be written off over time. Items less than $300 can be written off in one years. Items over $300 and less than $1,000.00 can be written off in four years. Other items, is determined by the Australia Taxation Office effective life years table.


Smart property investors tend to acquire new properties that gives them the maximum tax depreciation benefit, in the first 5 to 10 years, then sell them off, when the maximum tax depreciation benefit runs out. Smarter property investors tend to buy new properties that are strata titled, for further tax depreciation benefits, with their portion share of the common property fixtures, such as lifts, swimming pools, gyms etc.


Member of the Australian Property Institute (API) INC.

Paul McKenzie has been a certified property valuer (New South Wales registered No 4096 and Queensland registered No 2078) for over 18 years. He has extensive experience in residential, commercial, industrial, retail, rural and special use properties. Over the 18 years experience, he has covered areas in Australia's eastern seaboard, from Phillip Island in Victoria to the south, up the Cairns/Palm cove to the north. Working in valuation procedures and systems, to undertake quality valuation work and reports for clients, in accordance to API standards and practices.

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