Two reports answer different questions
A property depreciation report organises assessed construction and asset information for tax reporting. A property valuation assesses market value at a specified date. The word “value” can appear in both, but the measures and intended uses differ.
When depreciation information is relevant
An investor may need a schedule when their accountant requires reliable construction or asset information. Purchase records, building history, rental use and existing schedules help determine the scope. Eligibility is assessed against the relevant tax rules.
When market value is relevant
Your adviser may request market value for a CGT event, transfer, legal matter or other decision. The instructions should identify the property interest, purpose, valuation date and recipient. A depreciation schedule does not substitute for that evidence.
If you need both
Tell Propti what your accountant or solicitor has requested. Separate the two purposes and dates before accepting a quote. Coordinating the enquiry can be helpful, but the professional assignments and deliverables still need to be clear.
Frequently asked questions
Does the property need to fall in price to claim depreciation?
Tax depreciation and market price movements are different concepts. Eligibility depends on the relevant expenditure and rules.
Can one report replace the other?
Not simply because both concern the same property. Confirm the required information with your adviser.
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.