Tax Depreciation
How tax depreciation works for investment property — claiming Division 40 and Division 43 deductions, depreciation schedules and ATO rules.
10 expert articles in this category, written by Koste's Chartered Quantity Surveyors.
What is a Low-Cost Asset in Depreciation?
A low-cost asset is a depreciating asset with a cost of less than $1,000. Under Australian tax law, these assets can be immediately written …
What is ATO Ruling TR 2006/15 and Why It Matters
ATO ruling TR 2006/15 clarifies the effective life of depreciating assets for tax purposes under Division 40 of ITAA 1997. It guides account…
Can You Switch from Prime Cost to Diminishing Value Depreciation?
In Australia, once you choose a depreciation method (prime cost or diminishing value) for an asset, you must continue using it for the life …
What is the Cost of a Tax Depreciation Schedule?
The cost of a tax depreciation schedule in Australia typically ranges from $400 to $1,000, depending on property type and location. This cos…
How Does Depreciation Work for Mixed-Use Property?
Depreciation for mixed-use properties in Australia involves apportioning deductions between residential and commercial components. Under **D…
Understanding Instant Asset Write-Off for Rental Properties
The instant asset write-off allows property investors to immediately deduct the cost of eligible depreciating assets up to a specific thresh…
How Does the ATO Verify Depreciation Claims?
The ATO verifies depreciation claims by reviewing supporting documents, such as tax depreciation schedules, receipts, and purchase agreement…
Can Two Owners Claim Depreciation on the Same Property?
Yes, two owners can claim depreciation on the same property, but each must do so proportionately based on their ownership interest. Under **…
What is a Quantity Surveyor and Why Do You Need One?
A Quantity Surveyor is a construction and property cost expert. They are crucial for investors seeking to maximise tax depreciation benefits…
Division 40 vs Division 43: What's the Difference?
Division 40 and Division 43 are parts of the ITAA 1997 that cover tax depreciation. Division 40 concerns plant and equipment, while Division…
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