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real depreciation services

Are you a Property Investor missing out on thousands in taxation deductions?

Depreciation may be your answer!

By having your Depreciation Report paid for and completed by RPM before the end of the financial year, you can maximise your property investment return.

We can help you reduce your taxable income which means more cash back in your pocket!

Air Conditioning
Air Conditioning $13,960
$13, 960 investment
10 Year Claim
Year 1 Claim $2,792
Year 2 Claim $2,234
House Value
Claim Value $7,684
$212, 505 investment
40 Year Claim
Year 1 Claim $5,313
Year 2 Claim $5,313
Curtains
Curtains $5,600
$5, 600 investment
6 Year Claim
Year 1 Claim $1,866
Year 2 Claim $1,244
Security System
Security System $2,980
$2, 980 investment
5 Year Claim
Year 1 Claim $1,192
Year 2 Claim $715
Rain Water Tank
Rain Water Tank $2,245
$2, 245 investment
40 Year Claim
Year 1 Claim $56
Year 2 Claim $56
Gutters
Gutters $2,950
$2, 950 investment
40 Year Claim
Year 1 Claim $74
Year 2 Claim $74
Carpet
Carpet $6,510
$6, 510 investment
10 Year Claim
Year 1 Claim $1,302
Year 2 Claim $1,042
Garage Door
Garage Door $795
$795 investment
10 Year Claim
Year 1 Claim $149
Year 2 Claim $242
Fence
Fence $3,170
$3, 170 investment
40 Year Claim
Year 1 Claim $79
Year 2 Claim $79
Investment
Value & yearly claim
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real recouping

A Tax Depreciation Schedule will save you money!
In fact, we guarantee to do this within the first full 12 months of our report.

We do this by assessing all the items at the investment property some of which are shown above.
If our return is not greater than our fee, we will refund your money, simple as that!

Throughout the process we will ensure that our reports are in line with your strategies and financial goals
Once your Tax Depreciation Schedule is completed there is no more to pay. Ever.

Furthermore, if something on the property changes throughout your ownership,
We will update your report free of charge.

By engaging us we will follow the Real Property Matters 5 Steps to ensure we achieve the best possible returns not just for the initial years but for your entire ownership of the investment property.

In fact, we believe that we are that good at our profession and confident that our service will save you in your tax that should you not save money in the first full financial year of your report, we will refund our fee… It’s our Real Guarantee… Simple as that.

  • + how it works

    To understand Tax Depreciation in relation to your investment property, think about our apple.
    In Year 1 the apple is valued at $100 and in Year 2 the apple’s value has dropped to $50.00.

    That $50.00 loss in value is depreciation.
    Your building and fit-out is also gradually losing value. The ATO allows you to claim this loss of value against your taxable income… reducing the amount of tax you pay.

    Tax Depreciation is an allowable ATO ‘wear and tear’ deduction you can claim on an item belonging to your investment property. As something gets older it loses value. Depreciation recoups that loss of value as a deduction against your taxable income.

    Claiming depreciation is a significant taxation benefit that will reduce the amount of tax you pay.

    Depreciation is a non-cash deduction; something you do not need to spend money on to claim.

    There are hundreds of items that get assessed by Real Property Matters’ Quantity Surveyors and valued accordingly. Once valued, these items are given ‘effective life’ by the ATO and a depreciation amount is established.
    eg Item: Carpet Value: $2400 Effective Life: 12 years Yearly depreciation claim: $200.00

    Real Property Matters Quantity Surveyor’s are in constant communication with the ATO ensuring your items are depreciating per correct guide lines.

  • + what can be claimed

    Every property has something to depreciate!
    A Real Property Matters Quantity Surveyor will inspect the property to identify and assess all possible items that can be included in the Tax Depreciation Schedule. By inspecting the property we will ensure that all Items are assessed, valued and depreciated correctly as per the A.T.O Guidelines. The areas that the Quantity Surveyor is assessing are the following.

    The Building
    (Post July 1985) Current tax legislation states that residential properties built after July 18 1985 qualify to have the building component (walls, roof, floors etc) valued and the original construction cost can be depreciated, per ATO guidelines.

    Structural Improvements
    (Post 27th February 1992) Fixtures and improvements that have been completed to the property post this date also qualify to be valued and depreciated. It includes fixed assets like; pergola• fencing • swimming pool • paving • shed • clothesline • tank •letterbox.

    Plant & Equipment
    All plant & equipment items, irrelevant of age, qualify for Depreciation. It includes removable assets such as; range hood• oven • cook top • hot water system • smoke detectors •air conditioner • security system • floor coverings and window treatments, to name a few.

    Refer to the chart below for the specific dates that various properties types must have been constructed after, to qualify for depreciation.



    Every property has something to depreciate regardless of age, It would be rare for an investment property not to have improvements that could be included in your Tax Depreciation Schedule. Real Property Matters will even identify improvements that where completed by a previous owner for you to claim.

    Remember, all Plant and Equipment items can be included in the report, irrelevant of their age.

    If you have an older property you should read this;
    Real Property Matters Why No Property is to Old for Depreciation

  • + how it is calculated

    A Real Property Matters Quantity Surveyor is recognised by the ATO to prepare your Tax Depreciation Schedule. The above scenario illustrates the claimable period for a property purchased in 2014 that has had improvements completed in 2000, 2005 and 2010. The depreciation on those improvements will expire 40 years after their construction date. The plant and equipment items will start depreciating from March 2014 for the new owner.

    A Real Property Matters Tax Depreciation Schedule is split into two main areas;
    1. Capital Works Allowance (Division 40)
    2. Plant and Equipment Allowance (Division 43)
    (refer to graph below)

    Let’s look at Capital Works. These items are the permanent fixtures to the property. (They cannot be removed without causing damage)
    Capital works is then split up into two different areas.

    1. Building Works.
    2. Structural Improvements.

    1. Building works, as the names suggests, covers the building itself, walls, roof and floors. For the building to qualify for depreciation the construction must be built after 18th July 1985 for residential properties.

    To establish a claim for Building Works, the original cost to construct the property needs to be established. Here, it’s essential that Property Investors engage a specialist Quantity Surveyor to determine the original construction cost.

    The depreciation of the Building Works commences from the date when construction was completed. For residential properties the building will depreciate at a rate of 2.5%per year for a 40 year period.

    Structural Improvements the other section of Capital Works, this area covers items that belong to the property that cannot be removed without causing damage. This includes items such as fencing / clothes lines / paving / to name a few, various improvements like painting / bathroom and kitchen upgrades can also be included.

    For a structural improvement to be included in our depreciation report, it needs to be completed after the 27th February 1992. Like the Building Works Section, if the cost of the improvement is unknown, the assistance of a Quantity Surveyor is mandatory to establish the construction cost of the improvement.

    Both areas of Capital Works (Building Works and Structural Improvements) for residential properties depreciate at 2.5% for a 40 Year period. The depreciation on the item will commence from when the construction was completed.

    Plant & Equipment the other major section to property depreciation. These are the items that can be removed from the property without causing it damage, such as carpets / window treatments / air conditioners / ceiling fans / smoke detectors and cook tops, to name a few.

    The depreciation life of Plant & Equipment is handled differently than the Capital Works Section.

    With Plant & Equipment items, the depreciation life starts again when the Property Investor purchases the property.

    Like Capital Works, our Quantity Surveyors are qualified to value these items. Unlike Capital Works the depreciation life of the Plant & Equipment items vary. Generally they range between 4 and 20 years. Remember, Real Property Matters is in constant communication with the ATO to ensure that these items are depreciating in line with their tax rulings.

  • + real choices

    Real Property Matters specialty is valuing and depreciating investment properties, our aim is to maximise your return. Once the value of the item and its depreciation life is established, the ATO allow the property investor to depreciate these items using different methods to fit their investment strategy;

    Real Property Matters provides all three options with graphs to assist your decision;
    1. Prime Cost
    2. Diminishing Value
    3. Diminishing Value with Low Value Pooling

    Prime Cost Method
    This method suits investors looking to hold the property in a long term investment plan as it provides consistent claims from year to year. It is structured so the claims are lower in the earlier years compared to other methods, yet you will still claim the full value over time.

    Diminishing Value Method
    This method suits investors with a short term investment plan, typically around 5 years or less. The claims will diminish each year, with a larger claim being portioned in the earlier years. The full value is still claimed over time however, it will put more money in your pocket sooner.

    Diminishing Value with Low Value Pooling
    In addition to the Diminishing Value Method, a Low Value Pool can be created to claim even more money sooner for those with a short term investment plan. There are two types of assets that can be allocated into a Low Value Pool to increase the property investors return, namely a Low-Cost Asset and a Low-Value Asset.

    Low-cost assets are items (chattels) that have an opening value of $1,000 or less at the commencement of the Tax Depreciation Schedule. This includes items that are purchased and installed in subsequent years. In the first year, the item will depreciate at a rate of 18.75% and ever year thereafter, it will depreciate at a rate of 37.5%.

    Low-value assets are items (chattels) that you claim with an opening value of greater than $1,000 and in subsequent years have depreciated to reduce their value below 148,000. When the opening value for the financial year is below $1,000 the item will be allocated to the Low Value Pool and depreciate at a rate of 37.5%.

    For example, carpet valued at $1,200 would have depreciated by $240 after the first year. The remaining value at the beginning of the following financial year would have reduced to less than $1000, making it eligible to be allocated to the Low Value Pool.

    Our table below will help demonstrate the three different depreciation methods available to Property Investors, notice the variance between the three methods for carpet valued at$1200:


    Year Year Diminishing Value Diminishing Value
    with Low Value Pool
     Year 1  $120  $240  $240
     Year 2  $120  $192  $360
     Year 3  $120  $154  $225
     Year 4  $120  $123  $141
     Year 5  $120  $98  $88
    Total over first 5 years  $600 $807  $1054
  • + the difference a claim make

    Quantity Surveyors are one of the few industry professionals recognised by the ATO as having the necessary experience and expertise to prepare a Tax Depreciation Schedule. Regardless of the age of your property, Real Property Matters will identify all possible assets at your investment property in order to maximise your available deductions.

    A Real Property Matters Tax Depreciation Schedule not only reduces your taxable income for the life of your property, you can also claim the schedule fee as an immediate tax deduction. Claims after 12 months range from $2,500 to $20,000 and occasionally more, our average claim is $5,520 which equates to $55,000 over 10 years. To determine your potential claim please Contact Us

    The table above shows the difference that an average Tax Depreciation claim can make for you, in just 12 months. While this scenario gives you a saving of\ 87 after one year of having the schedule completed, it is only a guide. You should always check your financial situation with your Accountant or Financial Advisor.

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Real Building Replacement Valuation

Do you know what it will cost to replace your investment?

Research shows that over 80% of Australian property owners don’t know the replacement cost of their investment property, leaving them financially at risk should mishap or disaster occur.

Real Property Matters offer Building Replacement Valuations to ensure property owners have all the information they require to adequately replace their investments

There are many necessary factors that must be taken into account when assessing the correct replacement amount required. These factors include;

  • The rise and fall of prices during the pre-construction phase
  • Professional/authority fees and approvals
  • Construction delays (due to material/labour shortages, weather, etc)
  • Time lapse between policy renewal dates and much more Real Property Matters have detailed knowledge and experience in determining construction costs and building procedures involved to assist all investors.

Real Property Matters can provide you with a Building Replacement Valuation that will mitigate the risk should mishap or disaster occur. Visit our Contact Us page and fill out an enquiry form to arrange a Building Replacement Valuation for your property now.

Real Condition Report and Budget Forecasts

Like every property investor, the last thing you want is the sting of unexpected outlays through unforeseen maintenance and repairs.

Be proactive with your investment portfolio and speak to the Real Property Matters about a Condition Report & Budget Forecast for your property.
  • Reports are completed by our Quantity Surveyors, through a detailed inspection of your property, assessing the current condition and remaining life of the property and its plant.
  • We identify a range of issues for your property, highlighting items that need to be monitored and maintained, plus items needing to be replaced in the near future.
  • Our expertise in cost planning allows us to predict the associated costs and the time frames that issues need to be addressed within.
  • Cost estimates take into consideration current market conditions, and allow for increases in replacement costs over time.

Following our assessment of your property, Real Property Matters prepare a budget forecast, designed to assist you to budget funds for the long term maintenance and replacement of your property's depreciating assets.

We will also recommend a suitable annual contribution to a fund for the replacement of those assets, allowing you to plan your investment strategy with confidence.

Real Calc-ul-8

Tired of sorting through receipts? Are you sick of storing shoe boxes with records in?

Real Property Matters understands the importance of keeping records accurate and organised. As such, we have developed an online bookkeeping facility; Calc-ul-8.

Calc-ul-8 will assist you with;
  • Recording all property transactions - including your income & tracking your expenses
  • If you have multiple owners, Calc-ul-8 can proportion the financial transactions as per the ownership percentage
  • Vacant periods can be excluded from your summary if required
  • Accountants or Financial Advisers can be given access to view your property transactions through our website
  • All purchases and expenses can be appreciated as per ATO guidelines
  • An interactive self-help facility is provided to guide you through the process
  • Friendly update reminders can be sent if required, to keep you on top of things

Calc-ul-8 will also summarise your transactions (according to ATO guidelines) and provide you with the corresponding years depreciation amounts - all in a simple, one page summary.

Your Accountant will love you for it!

  • Reconcile your statements
  • File receipts and invoices
  • Email a summary to your accountant

This innovative and easy to use bookkeeping tool will take the time and hassle out of recording your transactions.

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