DEPRECIATION CONSULTANTS LTD 

We are currently building our new website but in the meantime there is general information below and you can contact us by email at enquiries@depreciation.co.nz, phone/text 027 448 2409, or fill out the form at the bottom of the page

Our Services

Depreciation Consultants works with property investors and related property professionals, especially accountants, to provide cost effective Depreciation Reports. This allows you to correctly work out how much depreciation you can claim in your tax returns to be able to minimize your tax liability and improve the cash-flow for your investment property. These reports are sometimes referred to generically as “chattel valuations” or “depreciation appraisals”.

Are you missing out on claiming the depreciation allowance available on your rental property and thereby paying too much tax?

Many investment property owners and property related professionals don’t realise that you can claim a depreciation expense in your tax return for “chattels”, some building “fit-out” and some land improvements, that are not considered by IRD part of the “building”. 

IRD’s “3-Step Test” clarifies what was part of the building and what is not.

Depreciation is a non-cash allowance for the loss in value caused by wear and tear, age and obsolescence of the chattels and fit-out of your rental property. For every dollar that you claim as a depreciation expense you can save up to 39 cents in tax liability (the amount will depend on your individual marginal tax rate and the effect of ring-fencing rules).

The director of Depreciation Consultants has been involved in the industry for over 18 years. He has personally been involved in the property inspection and production of over 5000 Depreciation Assessments for property investors. We understand the rules and help you claim the correct and maximum depreciation allowance so that you don’t pay more tax than required.

Depreciation Consultants recommend that you use property related advisors that specialise and understand the requirements of property investors.


DEPRECIATION REPORT FEES

Below are our report fees for various property types. We will confirm the fee once we have all the relevant details of the property

 
Price 
Single Residential 

This includes typical residential houses, flats, units or apartments that are unfurnished, on a single title or purchase price, with one tenancy agreement

$450 incl GST

Multi Residential

This option is for properties that have more than one dwelling or tenancy included in the report eg House and minor dwelling

From $550 incl GST  

Extras

These include other fees for furnished dwellings, travel outside of Auckland Council boundary, no access etc

From $100 incl GST

Commercial Properties

New Purchase Price Allocation (PPA) rules came into force from 1 July 2021 affecting most Sale and Purchase agreements for commercial properties, so currently Depreciation Consultants is not offering reports for these, but may do so in the future

From $600 + GST

EXAMPLES

The following examples are from real appraisals and are used for illustrative purposes only. Each property varies widely depending on the level of fit-out, size and age of depreciable assets.

New 166m2 Standard Rental property purchased for $1,150,000

Depreciable Assets $75,000

First 12 months depreciation $12,400

First 12 months tax saving* $3,851 

5 years depreciation on diminishing value $41,700

5 years tax saving* $13,761

*Tax saving based on a 33% marginal tax rate

Renovated basic small property purchased for $847,000

Depreciable Assets $30,000

First 12 Months depreciation $4,100

First 12 months Tax saving* $1,350

5 years depreciation on diminishing value $14,300

5 years tax saving* $4,719

*Tax saving based on a 33% marginal tax rate

Original condition 20 year old property purchased for $744,000 

Depreciable assets $29,000

First 12 months depreciation $3,500

First 12 months Tax saving* $1,150

5 years depreciation on diminishing value $13,000

5 years tax saving* $4290

*Tax saving based on a 33% marginal tax rate


To contact us please fill in the details below and Depreciation Consultants Ltd will get back to you as soon as possible

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