Who prepares the information?
A depreciation assignment needs appropriate cost and asset expertise for its scope. Quantity surveyors commonly assess construction costs. Ask the proposed preparer about qualifications, relevant experience and any tax agent registration required for the services being supplied.
Who determines the claim?
The property owner supplies the facts and records; the preparer assesses the agreed information; the accountant determines its treatment in the return. No professional title alone makes every listed cost deductible.
What should the engagement explain?
Confirm the property, income years, inspection or evidence arrangements, deliverables and fee. Ask how unknown construction costs will be addressed and how the report will identify assumptions and exclusions.
What should you supply?
Provide purchase and rental dates, ownership information, construction and renovation records, asset invoices and earlier schedules. Tell the preparer about mixed or private use so relevant limitations are considered.
What happens after delivery?
Check the property facts and send the report to your accountant. Keep records of subsequent asset replacements and improvements. Corrections to facts and later changes should be distinguished from the original assessment.
Frequently asked questions
Are all schedules approved by the ATO?
Do not assume an individual commercial report has ATO approval. The relevant question is whether its evidence and treatment meet the applicable requirements.
Can a report guarantee my deductions?
No. Claims depend on your circumstances and the tax rules.
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.