Why a Tax Depreciation Report for investment property should be renamed a ‘Chocolate Sundae with a Cherry on Top’
The words ‘tax depreciation‘ are not very appetising. Add the word ‘report’ and I can just about see your eyes glazing over. Not surprisingly.
Tax has forever been associated with something we all have to do. My dad always told me, “Death and taxes, can’t avoid them.” Like that was setting me up for an exciting life of waiting for my tax return each year.
Even the thought of having to get to the accountant used to fill me with fear. ‘Here we go again, what am I going to have to fork out this time?’ Add the word ‘depreciation’ to the mix and you have a glimmer of hope….just.
Doesn’t the word depreciation just conjure up visions of something going down in value? When I think depreciation I think of a brand new car ‘depreciating’ as I drive it out of the lot with its new car smell.
Don’t get me started on the word ‘report’. How many of you just visualised your 5th grade report card with Mrs Johnson writing about how you talk too much and are simply not performing to your potential?
Poor accountants. They get lumped with the dry stuff don’t they? Asking you to find a report for tax depreciation and you have to find a what? Quantity Surveyor? Aren’t they the people on the roads looking through the tripod thingy?
Well instead of ‘tax depreciation report’ I have decided to relabel them ‘Chocolate Sundae with a Cherry on Top’. Why you ask? Well after you have signed the contract on your precious investment about to set you on the road to financial freedom, you call someone like us.
We come out to your new asset all smiling and courteous and put together a gift for you in the form of a bunch of numbers that your accountant is going to swipe off your tax owing every year for as long as you own the property!
That’s right – EVERY YEAR THAT YOU OWN THE PROPERTY that little baby keeps on giving.
Wouldn’t it be much more fun walking into your accountants office and he tells you to go out and get a “Chocolate Sundae with a Cherry on Top?” Sure! I can do that!