The one document new-build investors forget to ask for

If you are buying a brand-new investment property — a house and land package, a townhouse, a new apartment — there is a document that belongs on your checklist from day one. Most investors never ask for it, and their accountant has to chase it later.

It is called a depreciation schedule.

What it is

A depreciation schedule is a report that sets out the deductions that may be available on the building itself and on the fixtures and fittings inside it — things like carpets, blinds, appliances and air-conditioning. Because a new property is, well, new, the items in it are at the start of their effective life, which is why depreciation is often more significant on a new build than on an older property.

Who prepares it

A qualified quantity surveyor prepares it. It is not something your accountant produces from your purchase contract; a quantity surveyor inspects or assesses the property, values the components and produces a schedule that runs for the years ahead.

When to get it

Usually at or just after settlement, once the property is yours. Some buyers arrange it in the weeks before their first tenant moves in so that the first tax year is covered from the start.

Who uses it

Your accountant, every single tax year. That is the practical point: it is prepared once, and it keeps working for you year after year. Miss it and you may be leaving deductions unclaimed, or paying your accountant to reconstruct figures that should have been sitting in a folder.

Where TNC Group fits

We put the depreciation schedule on every new-build client’s checklist, alongside the other settlement documents. We do not prepare it and we do not give tax advice — that is what your accountant and a quantity surveyor are for. Our job is to make sure the step is not forgotten and that the right professional is introduced at the right time.

Next step

If you are planning a new-build investment purchase and want the process managed end to end, book a free 15-minute call: https://leads.leads.tncgroup.com.au/widget/booking/VIiJOVAo7mhEsE3xLNrb

General information only — not tax, financial or legal advice. Whether depreciation applies, and how much, depends on your circumstances. Speak to your accountant.