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Depreciation . www.renos.com.au | info@renos.com.au | 1300 550 656. What is Depreciation?. Hidden cash flow for property investors As buildings get older items wear out – they go down in value You can get a tax benefit for this! You can’t claim depreciation for your PPOR.

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Depreciation

www.renos.com.au | info@renos.com.au | 1300 550 656

what is depreciation
What is Depreciation?
  • Hidden cash flow for property investors
  • As buildings get older items wear out – they go down in value
  • You can get a tax benefit for this!
  • You can’t claim depreciation for your PPOR
what is depreciation1
What is Depreciation?

Must be carried out by a Quantity Surveyor (QS) then applied

by your accountant.

what is a quantity surveyor

Pre Construction

Construction

Post Construction

What is a Quantity Surveyor?

A specialist in building measurement and cost estimating

tax depreciation estimates
Tax Depreciation Estimates
  • Gives prospective purchasers/investors an accurate figure of potential tax depreciation
  • Helps to calculate the financial performance of a property investment
what is depreciation2
What is Depreciation?

Myth:

You can only get depreciation out of new or near new buildings.

WRONG!

depreciation
Depreciation
  • There is no age restriction on Plant and Equipment.
  • So when you buy an old property these effectively start a new life.
  • This is why old buildings still have depreciation benefits.
depreciation1
Depreciation

Depreciation may include:

  • The Building and built surrounds (i.e. carport)
  • Plant and equipment (i.e. hot water system)
  • Furniture
  • Where in a unit block with Body Corp, common areas
depreciation example 1 furnished unit block
Depreciation Example 1Furnished Unit Block

$385,856 over 9 years.

They even depreciate the egg cups!

depreciation example 5 old house
Depreciation Example 5Old House

Even a 30 year old building has $54,178 of deductions!

summary
Summary
  • Depreciation is a paper loss only
  • You get a tax break for this!
  • MUST be done by a QS, NOT accountant
  • Applies to old and new
  • Can be back dated 2 years
  • If you are an investor and haven’t got a depreciation schedule, we’ve just made you money!
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What did you learn today?

Renovator not Ruinmaker The Reno Kings

Maximizing Rent and Renting it Fast Colleen Sutherland

Investor Profile Matt Cosgrove

Tax, Structures & Asset Protection Warren Black

Finance Kerri Burness

Property Strategies The Reno Kings

Brilliant Bathrooms & Killer Kitchens Paul Eslick

Depreciation The Reno Kings

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TOMORROW: DAY 3 ADDING TREMENDOUS VALUE

The Reno Kings Adam Jones

Investor Profile