Property and ownership details
Prepare the address, property type, ownership entity and ownership shares. Identify any areas that are not rented or that are used privately. Let the preparer know whether the property is residential, commercial or mixed use.
Dates and cost records
Collect the acquisition documents, first rental date and available construction or improvement invoices. Distinguish work completed before purchase from work you commissioned. Avoid substituting the purchase price for original construction expenditure.
Assets and previous schedules
Supply an existing depreciation schedule and records of appliances or other assets acquired, replaced or removed. Your accountant needs to avoid duplicate claims and apply any restrictions on previously used residential assets.
Missing documents
Tell the preparer which records are unavailable. They can assess whether further documents, an inspection or a suitably qualified cost estimate are needed. An assumption should be identified as an assumption rather than presented as a documented fact.
Agree the deliverable
Confirm the years covered, inspection arrangements, fee and timing. Send the completed report to your accountant to assess the deductions relevant to your ownership and use.
Frequently asked questions
Must I know the original construction cost?
If it is unknown, tell the preparer. The appropriate approach depends on the evidence and assignment.
Should I include an earlier owner’s renovation records?
Yes, if available. They may help establish construction history, but eligibility still needs assessment.
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.