This episode of the Help Me Buy Property Podcast focuses on property depreciation. Our host Moxin Reza and honorable guest Jack Meller; discussed how property depreciation works, the difference between capital work deductions and plant and equipment, and the benefits of depreciation statements for investors.
Property depreciation is generally known to be an assessment of the future wear and tear of a property and allows investors to claim deductions for depreciation of assets. Depreciation is further split into two main types namely, capital work deductions (structure of the building) and plant and equipment (fast-depreciating items like appliances), this is majorly for the taxation calculation.
The depreciation statements are curated in order to help investors claim deductions for general wear and tear on the property, renovations, and structural works when it comes to filing of taxation. Now it has been noticed that new properties generally have better depreciation claims, but all properties can benefit from depreciation schedules or statements.
New properties obviously give out a better depreciation rate because of lesser usage/constructed time. It is important to know that due diligence is crucial in preparing depreciation reports, and attention to detail is important to avoid missing out on claimable items.
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Episode Highlights:
- 00:00 Welcome to Helpmebuy Property Podcast
- 02:19 Introduction to Property Depreciation
- 07:55 Changes in Property Depreciation in November 2017
- 16:00 On-Site vs. Desktop Property Depreciation Reports
- 21:01 The Good, the Bad, and the Ugly of Depreciation Schedules
