Property tax depreciation schedule is creating a schedule of estimated depreciable assets and capital works for new or existing property investments, thus enabling property owners to maximise their tax deductions. The fraction of the outstanding worth of a property that is going to be deducted annually is signified in the property tax depreciation schedule. Depreciation schedule is also utilised by Accountants whenever they reconcile the required tax depreciation information compared to the depreciation schedule; or during financial audit.

Property Tax Depreciation Schedule

There are three things needed in calculating a property tax depreciation schedule: Asset Book Value, Useful Life and Salvage Value. Asset book value is the original price of the property. Useful life is the length of time that the property will be useful for the business.  Salvage value is the projected cost that a property will realise once it sold at the end of its useful life.

Property tax depreciation schedule can be computed in two ways: straight line depreciation method and declining balance depreciation method. Straight line deprecation simply divides the cost of the property by the useful life. Declining balance depreciation is computed by the depreciable basis of the property multiplied by the useful life; depreciable basis of the property is calculated as property book value minus the accumulated depreciation.