Can You Back Date Depreciation Schedules? (Ep145)

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If you’ve forgotten to get your depreciation schedule done you can backdate your depreciation schedules sometimes and amend previous tax lodgements.

Today I sit down with Brad from BMT Quantity Surveyors and we talk about the opportunity to backdate your depreciation schedule and how you can go about getting this done.

This is part 6 in a 10 part series on depreciation.

Can You Back Date Your Depreciation Schedule?


Let’s say we just discovered that depreciations schedule is a great thing to do I have own this property for ten years can you back date it at all?

With so many investors not maximising their depreciation properly there is the opportunity to go back for two years very easily and amend this.

You will need to get your accountant to amend your returns so you can get some money back.

Do Quantity Surveyors Facilitate This Back Dating Report?

It is possible to back date more than 2 years but it is REALLY difficult to get it approved.If you bought the property about five years ago effectively the depreciation starts five years ago. You can’t go back and get it five years ago to claim it.

A good quantity surveyor will structure the report to best get the deductions for you inside the two years you can claim.

Can You Back Date Depreciation Schedules More Than 2 Years?

It is possible to back date more than 2 years but it is REALLY difficult to get it approved. It’s best to check with your account on how to do this if you want to attempt it.

So it’s really worth people going ahead and getting it done early because these tax deductions often provide massive benefits to the investor. So to effectively miss out on that for a number of years could definitely be affect the return investment for the investor.

Is It Worth Back Dating Depreciation?

On average you can likely find approximately 5019 thousand dollars per year in tax deductions.

On average you can likely find approximately 5019 thousand dollars per year in tax deductions. Now that’s probably an average so some get fifteen thousand dollars per year there can be some serious money per week back by actually getting it done properly.

Not doing it is like just giving the tax office your money and just let them play with it. After those two years of laps it’s very difficult to backdate more than two years.

I have heard stories of some people being able to backdate five or seven years but they are very rare and I so had also heard of stories of people trying to back date two years and three months and actually been knocked back because it’s over that 2 year period.

So it is definitely something you want to get done as soon as you buy a property or if not within that first year or that first two years.

It is also important to check how depreciation effects you cash flow. It can often mean the different between a positively geared property and a negatively geared property

The Advanced Property Calculator incorporates depreciation to show you the potential cash flow upside of depreciation. This is available inside Get the free eBook. Inside On Property Plus I also list positive cash flow properties for sale. Check it out.

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