Read the property details first
Check the address, ownership details, relevant dates and scope. An error in these basics can affect how the schedule is applied. Let the preparer know if the property includes multiple dwellings, mixed uses or areas used privately.
Identify the separate cost categories
Find the sections dealing with capital works and depreciating assets. They should not simply allocate the entire purchase price to a deduction. Ask the preparer to explain estimated costs, exclusions and any assumptions about construction or renovation history.
Follow the annual tables
Check which income years are covered and whether calculations reflect the dates and use provided. A multi-year table does not mean each listed figure can automatically be claimed unchanged. Your accountant needs to consider current circumstances and previous claims.
Check changes since preparation
Compare the report with later renovations, disposals and replacement assets. Keep supporting invoices and avoid assuming an old item remains in use. Ask whether an amendment or supplementary assessment is appropriate.
Keep the report with its evidence
Retain the schedule, its instructions, relevant cost records and correspondence about corrections. This helps your accountant understand the basis of the information and answer later questions.
Frequently asked questions
Is a schedule a market valuation?
No. It supplies cost and asset information for tax reporting, rather than assessing the property’s sale value.
Should the schedule be replaced annually?
Not automatically. Review its suitability when facts, assets or applicable treatment change.
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.