Tax Depreciation for First-Time Property Investors

1. What is Tax Depreciation and How Does It Benefit Property Investors?

Short Answer:

Tax depreciation allows property investors to claim deductions for the natural wear and tear of their building and assets, reducing taxable income and boosting cash flow.

Key Benefits of Tax Depreciation:

✅ Lower tax bills – Reduce your taxable income and pay less tax.
✅ Improve cash flow – More money in your pocket each year.
✅ ATO-recognised deduction – Completely legal and fully compliant when assessed by a Chartered Quantity Surveyor.

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2. Do All Property Investors Need a Tax Depreciation Report?

Short Answer:

Yes! If you own an income-producing property, you should have a professionally prepared tax depreciation schedule to ensure you’re claiming every deduction legally available.

Who Needs a Depreciation Report?

✔ First-time property investors who have recently purchased a rental property.
✔ Experienced investors who have not yet claimed depreciation.
✔ Commercial property owners & tenants who want to maximise tax deductions.

📌 Order Your Tax Depreciation Report Now: Start Here

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3. How Much Can First-Time Investors Claim in Tax Depreciation?

Short Answer:

The amount you can claim depends on your property type, purchase price, and construction date, but many first-time investors claim between $5,000 and $15,000 in the first year alone.

Factors That Affect Your Depreciation Claim:

🔹 Property Age: Newer properties typically have higher claims due to recent construction.
🔹 Fit-Outs & Renovations: Any improvements may qualify for extra deductions.
🔹 Purchase Price & Asset Values: Higher-cost properties typically have greater depreciation potential.

📌 Get an Instant Estimate on Your Depreciation Claim: Check Your Savings

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4. Do I Need a Site Inspection for My Depreciation Report?

Short Answer:

Not always. For new properties, a desktop report is usually enough, but older properties may require a site inspection.

When is a Site Inspection Recommended?

✅ Second-Hand Properties – Ensures accurate valuation of existing assets.
✅ Commercial & Unique Properties – More complex assets require in-person assessment.
✅ Renovated Properties – Helps identify past upgrades that qualify for deductions.

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5. Can I Claim Depreciation on an Older Investment Property?

Short Answer:

Yes! Even if your property is several decades old, you may still qualify for depreciation deductions.

What Can Still Be Claimed?

✔ Capital Works (Division 43) – Any renovations or structural improvements completed after 16 September 1987 may be deductible.
✔ Plant & Equipment (Division 40) – If you install new assets (e.g., air conditioning, carpets, appliances), they qualify for depreciation.

📌 Find Out If Your Property Qualifies: Request an Assessment

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6. Do I Have to Claim Depreciation Every Year?

Short Answer:

No, but if you skip a year, you could be losing thousands in tax savings.

Why You Should Claim Every Year:

✅ Your tax depreciation report covers 40 years – One report lasts the lifetime of your investment.
✅ Claiming depreciation improves cash flow – Helping you reinvest or pay down loans faster.
✅ If you miss a year, you may still be able to amend past tax returns.

📌 Maximise Your Tax Savings Every Year: Order Your Report

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7. If I Haven’t Claimed Depreciation Before, Can I Backdate My Deductions?

Short Answer:

Yes! The ATO allows tax return amendments to claim past depreciation, meaning you can still benefit even if you’ve never claimed before.

How to Backdate Depreciation Claims:

1️⃣ Order a Koste Tax Depreciation Schedule – It includes retrospective claims.
2️⃣ Submit the Report to Your Accountant – They can adjust prior-year tax returns.
3️⃣ Receive a Potential Tax Refund – Claim deductions you previously missed.

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8. How Do I Order a Tax Depreciation Report?

Short Answer:

Ordering a tax depreciation report is quick and easy with Koste.

Steps to Get Your Report:

1️⃣ Order Online – Takes less than 5 minutes.
2️⃣ Provide Property Details – We collect information on the build year, assets, and renovations.
3️⃣ Report Preparation – Our Chartered Quantity Surveyors prepare your ATO-compliant schedule.
4️⃣ Receive Your Report – Delivered within 5-7 business days.

📌 Order Your Tax Depreciation Report Now: Start Here