Depreciation Schedule Overview
Under income tax law and in accordance with the ATO, you are eligible to claim deductions on investment properties against your taxable income. The value of all capital assets over time gradually reduces as they approach the end of their “effective life”. These assets can then be written off as tax depreciations; essentially known as depreciation.
A Tax Depreciation Schedule is a professionally produced document highlighting items of plant, equipment and capital costs that may be depreciated. The Tax Schedule allows the client to claim deductions on the different assets and offset their overall taxable income. Obtaining a Depreciation Schedule from AusDep ensures maximum entitlements are claimed and greatest savings are achieved.
Income
$100,000 + $35,000 (salary + rental income)
Less
$24,000 (non cash depreciable deductions)
Less
$ 37,500 (cash deductions for interest on mortgage)
Total
$73,500 (adjusted taxable income)
Less $24,000 from Depreciation Schedule reduces the clients’ taxable income by $24,000.