Understanding Koste’s Depreciation Report – What’s Included & How to Use It
A Guide to Maximising Your Tax Deductions With Koste’s Tax Depreciation Report
1. What Is a Tax Depreciation Report & Why Do I Need One?
Short Answer:
A tax depreciation report is an ATO-compliant document that outlines all allowable depreciation deductions for an investment property or business asset.
Why It’s Essential:
✔ Maximises tax deductions, reducing taxable income.
✔ Ensures ATO compliance with properly calculated depreciation claims.
✔ Improves cash flow, helping investors and business owners reinvest savings.
📌 Order Your ATO-Compliant Report: Request a Quote
2. What’s Included in a Koste Tax Depreciation Report?
Short Answer:
Koste’s comprehensive depreciation reports break down deductions into detailed sections for easy ATO lodgment.
Your Report Includes:
📄 Capital Works (Division 43) Deductions – Depreciation on structural components.
📄 Plant & Equipment (Division 40) Deductions – Depreciation on assets within the building.
📄 Year-by-Year Breakdown – A full schedule of depreciation over 40 years.
📄 Audit-Ready Documentation – Ensuring compliance with ATO regulations.
📌 View a Sample Report: Download Here
3. How Do I Use My Tax Depreciation Report for Tax Returns?
Short Answer:
Simply provide your depreciation report to your accountant or tax advisor, who will include the deductions in your annual tax return.
How It Works:
✔ Claim Division 43 deductions (building depreciation) at 2.5% per year.
✔ Claim Division 40 deductions (fixtures & fittings) based on asset lifespan.
✔ Reduce taxable income, improving yearly cash flow.
📌 Get a Depreciation Report for Your Property: Request a Quote
4. How Much Can I Expect to Save With a Tax Depreciation Report?
Short Answer:
Most investors save thousands of dollars per year by claiming tax depreciation.
Typical Savings:
🏡 Residential Property ($500K Value): $8,000 – $12,000 per year in deductions.
🏢 Commercial Property ($1.5M Value): $35,000 – $50,000 per year in deductions.
🏪 Retail Business Fit-Out ($300K Value): $20,000 – $30,000 per year in deductions.
📌 Estimate Your Tax Savings: Use Our Calculator
5. Do I Need to Update My Depreciation Report?
Short Answer:
Yes, if you’ve made renovations, installed new assets, or changed property use, you should update your depreciation report to capture all eligible deductions.
When to Update:
✔ After completing renovations or property upgrades.
✔ When switching from long-term to short-term rental.
✔ If the property has changed ownership structures.
📌 Update Your Depreciation Report: Request a Revision
6. What If I Lose My Depreciation Report?
Short Answer:
No problem! Koste keeps digital records of all reports, and you can request a new copy at any time.
📌 Step 1: Log in to your Koste account.
📌 Step 2: Navigate to "My Reports" and download your file.
📌 Step 3: If you need assistance, contact our support team.
📌 Retrieve Your Report: Request a Copy
7. What Happens If I Sell My Property?
Short Answer:
Selling a property may trigger Capital Gains Tax (CGT), and past depreciation claims can affect your cost base.
Key Considerations:
✔ Division 43 deductions lower your CGT cost base.
✔ Division 40 deductions do not impact CGT calculations.
✔ Speak to an accountant for CGT tax planning before selling.
📌 Get a CGT & Depreciation Review: Request a Consultation
8. How Do I Order a Tax Depreciation Report From Koste?
Short Answer:
Ordering a report is quick and easy, and can be done online in a few simple steps.
📌 Step 1: Choose your report type – Residential, Commercial, or Business Asset.
📌 Step 2: Provide basic property details (address, purchase price, year built).
📌 Step 3: A Koste Chartered Quantity Surveyor prepares your report.
📌 Step 4: Receive your ATO-compliant report within 5-7 business days.
📌 Order Your Report Online: Start Here