Start with the property’s actual use
Residential and commercial assignments both need reliable property records, but the relevant assets, ownership arrangements and tax treatment may differ. Mixed-use properties need particular care in describing the areas and activities.
Residential records
Provide purchase and rental dates, construction history and details of improvements and replacement assets. Previously used residential assets can be subject to restrictions. Do not assume an established property’s appliances qualify because they remain in use.
Commercial records
Supply leases, fit-out agreements, capital expenditure records and asset ownership details. Landlord and tenant contributions should be distinguished to avoid claiming the same cost twice. Equipment under separate lease or ownership arrangements needs clear identification.
Agree the right report scope
Tell the preparer which entity and income years the report concerns. Identify existing schedules and gaps in cost evidence. Confirm inspection arrangements, professional responsibilities and fee inclusions before work starts.
Use the results with tax advice
The accountant assesses eligible amounts and their treatment in the return. Do not compare properties by a generic deduction range or assume a larger building produces a particular saving.
Frequently asked questions
Can one schedule cover mixed use?
Ask the preparer how the areas, ownership and relevant costs will be separated in the assignment.
Is a commercial valuation the same report?
No. A market valuation addresses value rather than depreciation information.
Sources and further reading
- ATO: Work out your capital works deductions — Eligible construction expenditure and applicable deduction rules.
- ATO: Second-hand depreciating assets — Restrictions relevant to previously used residential rental assets.
Arrange the right report
Explore tax depreciation with Propti. Send the property address, purpose, required date and recipient’s instructions when you request a property report quote.