Skip to main content

Tax Depreciation

We offer tailored commercial loans designed to support the growth and success of your business. Whether you need funding for expansion, equipment, or cash flow management, our flexible financing options are built to meet the unique needs of self-employed professionals.
Contact Us

Understanding Property Tax Depreciation

Property tax depreciation is a specific type of depreciation that applies to real estate investments, particularly income-generating properties such as residential homes, commercial buildings, and industrial properties.

It allows property owners to deduct a portion of the property’s value over time on their tax returns, reflecting the wear and tear, deterioration, or obsolescence of the property.

Enquire Now
Accurate Assessments

We work with experienced quantity surveyors to provide precise depreciation evaluations for all property types.

Tailored Tax Plans

Our advisors customise depreciation strategies that maximise your tax benefits and fit your investment goals.

Trusted Expert Network

We connect you with qualified surveyors who deliver accurate, ATO-compliant depreciation reports.

Ongoing Support

As your property portfolio grows, we help keep your depreciation claims effective and up to date.

It can prove extremely valuable to investors:

  • Reduction in Taxable Income: Depreciation provides a substantial tax deduction that reduces the taxable income reported by the property owner. This decrease in taxable income can lead to lower overall tax liabilities, which is particularly favourable for investors.
  • Increased Cash Flow: Since depreciation is a non-cash expense, it allows property investors to retain more cash. By effectively reducing their taxable income, investors can increase their cash flow from rental income, which can be reinvested or used for other financial needs.
  • Improved Return on Investment (ROI): By lowering tax liabilities through depreciation, investors can enhance their overall ROI. The ability to offset income and reduce taxes can significantly impact the profitability of real estate investments.
  • Tax Deferral: Property tax depreciation allows investors to defer tax liability for years. While the depreciation deduction reduces taxable income in the current year, the real tax benefit comes due to the time value of money — the investor retains funds that would otherwise go to taxes.
  • Leverage in Real Estate Strategies: For real estate investors, depreciation is a crucial factor in strategic planning. It can be used to offset rental income, allowing investors to maximise profits while keeping their tax burdens lower.
  • Mitigation of Passive Activity Loss Rules: Real estate investors may also benefit from the ability to offset passive income with losses, including depreciation. Under specific conditions, these deductions can be carried forward to offset income in future tax years.
  • Potential for Recapture Taxes: While property tax depreciation provides immediate benefits, it’s essential to note that when a property is sold, the ATO may require recapture of depreciation taken, taxing it at a rate that could be higher than capital gains. It’s important to factor this into long-term investment strategies.

Property tax depreciation is a valuable tool for real estate investors, allowing them to reduce taxable income, improve cash flow, and enhance overall returns on their investments.

Expert Quantity Surveyor Services

Our preference is to utilise an experienced quantity surveyor for clients where it is cost effective and appropriate.

A quote can easily be obtain from one of our trusted partners by clicking on the link Elevate Financial Advisors Depreciation Start Form

Let's Chat

We are happy to provide you with any advice and answer any questions you may have.

Let’s make your financial goals a reality. Reach out today, and let’s get started together!

Send us a Message

Fill in the details below and we will get back to you shortly.