Property Depreciation Schedule: Who Qualifies and What You Get
Learn how property owners earning rental income can use depreciation to claim annual tax deductions based on their building's lifespan.
This scheme allows property owners to claim an annual tax deduction to account for the wear and tear of their buildings over time.
Who it's for
This is available to all property owners who earn income from renting out their properties.
What you get
You receive an annual tax deduction. This deduction is calculated based on the expected lifespan of your building's structure.
What it costs you
There is no direct fee to use this, but you must perform specific calculations. The deduction amount is determined by the original acquisition cost of the property and the specific type of building structure you own.
The catch to know
The rules change depending on the type of property you own. Residential buildings and commercial buildings follow different depreciation periods, so you must identify which category your property falls into.
How to apply
- Determine the acquisition cost of your property.
- Identify the structure type of your building.
- Calculate the annual deduction based on the building's lifespan.
- Include these calculations in your annual tax filings.