Any investor needs to know how depreciation may or may not affect their investment portfolio and any potential benefits that may apply. Not knowing can cost you thousands of dollars in unclaimed and undepreciated assets. It can even mean the difference between a negatively geared property and a positively geared one.
Obtaining a Tax Depreciation Schedule (TDS) can provide assistance in maintaining out of pocket expenses and even sometimes offset a negatively geared property enough to turn into a positively geared one.
One common misconception is that you only need to obtain depreciation schedule when you have a new property. Whilst it may be true that the younger the asset, the higher its depreciation ratio is, there is generally value in obtaining a schedule for properties aged even over 20 years of age (e.g. ovens, stoves, certain fixtures)
Whenever we have a new investment property buyer, one of the first things we recommend is that they obtain an independent party to arrange a depreciation schedule. The majority of the time, they will make the costs of the schedule back with their first tax return.
