DEFINING DEPRECIATION SCHEDULE AND WHO CAN PRODUCE IT?
If you are someone with possession of property assets such as house or office building or even any kind of property then you should understand what depreciation schedule means. You need to know the term since you will be dealing with it when you own properties, and this is something you won’t miss out if you care about how much you must pay for the tax of your property.
What is the depreciation schedule?
Now if we talking about depreciation schedule, it is related to the tax for the property you own. A tax depreciation schedule is a form of a document containing the annual depreciation value of the property, and it is the information that your accountant should know.
Property depreciation is considered to be wear and tear compensation. When a building is used, it will wear out along with everything inside it. that is why you must depreciate the value every year because a building will not stay new forever. As an addition, the depreciation schedule also can be applied to other assets such as different types of plans and equipment.
It is tax-deductible
There are many benefits of having your property depreciated and write it down in the tax depreciation schedule. It will beneficial for you as it offers a great return for your investment. The biggest depreciation for many types of properties is mostly because of the expenses. A tax depreciation schedule will give better value when the cost is tax-deductible.
Who can produce a tax depreciation schedule?
So, you may think that it is something that your accountant does. It is not. Accountants are indeed in charge of any financial related including maintaining records of assets and taxes. However, the accountants are considered not having the ability in estimating the building and renovating properties such as a building. So many accountants leave the job to the quantity surveyors. A quantity surveyor has the specific ability in managing the cost of a construction project. In terms of building cost, a quantity surveyor will keep the budget in minimum without compromising the quality of the building as a result. In tax depreciation schedule making, a surveyor will maximize the return of investment from the property you own. Leave the job to the professional quantity surveyor and you do not have to worry about the accuracy of the depreciation schedule, even when what you own is an old building.