Question 1

What is property depreciation?

Accepted Answer

Property depreciation allows investment property owners to claim tax deductions for the decline in value of the building (Division 43 at 2.5% per year for 40 years) and plant and equipment items like carpets, appliances, and blinds (Division 40 at varying rates).

Question 2

Do I need a depreciation schedule?

Accepted Answer

Yes. The ATO requires a depreciation schedule prepared by a qualified quantity surveyor to claim building allowance (Div 43) deductions. Plant and equipment can be self-assessed but a professional schedule maximises your claims. Schedules cost $400-$800 and last the life of the property.

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