Updating Tax Depreciation Schedules: Why Take It Seriously?

It is indeed good news for property investors that they have advantages from tax depreciation. Your property investment depreciates in value as time goes by and as its normal wearing out happens, as well as the physical assets within that property. You, as an investor, benefit from tax depreciation as it reduces your tax obligation as your overall taxable income is cut down. 

You claim the benefits you get from tax depreciation, and for you to do that, you need a tax depreciation schedule to note the assets and values your property investment covers. If you have a proper and accurate tax depreciation schedule, you are favored to claim tax deductions. 

And as time goes by, before you claim your benefits for the next tax depreciation, you need to update your tax depreciation schedule. Here are 3 reasons why it is important to do so and why you should really take it seriously:

1 – FOR THE DETAILING OF YOUR ASSETS AND VALUES

Your tax depreciation schedule is the primary requirement for your tax benefits to be granted for you. It is a special report that jots down the definite physical assets found in your property investment. Through the tax depreciation schedule, they will be sorted under their proper categories – either Plant and Equipment or Building Allowance. 

Rates and values designated for every asset are particularized through the tax depreciation schedule. It is important that you update it so that changes in rates and values – in any case that they get affected – will be changed and noted. 

2 – FOR LEGAL AND COMPLETE CLAIMS

A tax depreciation schedule can only be prepared and made by depreciation specialists. They are the Quantity Surveyors. They are the only ones authorized and recognized to create tax depreciation schedules for claiming taxation benefits. 

Since tax depreciation schedules are legal reports, you have to update them by making necessary changes. If you’ve missed out on claiming tax deductions for a certain physical asset because of human error when making the tax depreciation schedule for you, you have to update it so that for the next Depreciation, you can already obtain what you lost previously. You are only able to completely take advantage of claiming tax deductions if you have an accurate tax depreciation schedule. 

3 – FOR THE INCLUSION OF ADDITIONS AND IMPROVEMENTS

Cell phone applications update whenever there are improvements that the brand’s system worked on for better use. In the case of property investment, surely, you bought and added other assets in the property, most especially if you are still doing and planning renovations to be done. 

Those additions are not present in your previous tax depreciation schedule, and you have to include them. They are now part of the family of your properties and physical assets, so don’t forget about listing them in the schedule. That’s one of the most important reasons to update the report. New properties and assets provide big benefits, so do not lose the chance of reaping the benefits of tax depreciation. 

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Update your Tax Depreciation Schedule.

You will garner the ripe fruits of late and outdated tax depreciation claims, and you will happily get the best picks if you update your tax depreciation schedule and claim your tax deductions on time. Time is gold indeed, especially in tax depreciation, so use time wisely. Remember to make updates when needed, and be updated regarding important matters on your tax depreciation. 

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ABOUT THE AUTHOR:

Nicole Ann Pore is a writer, an events host and a voice over artist. Quality and well-researched writing is her worthwhile avenue to enlighten and delight others about things that matter. Nicole is a daytime writer for Depreciator, an Australian-based company specializing in tax depreciation schedules. Nicole graduated Cum Laude from De La Salle University Manila, Philippines with a Bachelor’s Degree in Communication Arts.

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