Property Depreciation is Now Available!

Depreciation can now be added to Investment Properties.

As a much requested addition, this latest update allows you to enter in the depreciation for each tax year, whether as a total sum, or as a breakdown of your Capital Works and Plant & Equipment (if applicable). It’s important to note that this is only intended for users with a valid depreciation schedule for the property.

Why has depreciation been added?

Depreciation serves as a deductible expense that doesn’t involve actual cash outlay, often enhancing the cashflows of an investment property, whether new or existing, without additional cost beyond the initial expense of acquiring the depreciation schedule. This is because, unlike other deductible expenses such as property management fees, depreciation is a non-cash deduction for the decline in value of depreciating assets, and thus requires no additional ongoing spending.

By leveraging depreciation, taxable income can be lowered, cashflow increased, and more funds retained. Even if an investment property has been owned for an extended period of time without a depreciation schedule, past tax returns can be adjusted to claim these overlooked deductions.

In essence, neglecting depreciation means potentially leaving money on the table.

As we strive for a more precise Moorr platform, this feature has been incorporated to ensure the utmost accuracy in your cashflow calculations.

 

Where can I add this in?

Under each of your Investment Properties (with a Primary Purpose of either ‘Investment Property’ or ‘Business Use’), you’ll see a new form where you can enter in your deprecation information.

You’ll find the space to add in an Annual Depreciation Amount and to log the Depreciation Method you are currently using.

This is also available for entry on the Mobile App.

If you have a property that was previously an Investment Property but has now been converted to an Owner Occupied property, you will still see the fields available for entry, however the data will not be included in your Investment Property Deduction Calculations for the next financial year onwards.

 

How it Works

When entering in the Annual Depreciation Amount, you’ll be directed to the changelog for the Annual Depreciation field, which will allow you to enter in your depreciation for each tax year. You can do this by either entering the Total Annual Depreciation, or the Plant and Equipment + Capital Works independently (if entering in this way, the Total Annual Depreciation value will auto-update based on this calculation).

Note: For the Tax Year Ending 2024, it is referring to the tax period of 1 July 2023 to 30 June 2024. Data will be stored for this entry on 1 July 2023, so that calculations throughout that period will use this figure. Note that figures are not pro-rata’d.  

 

How does depreciation affect the calculations in Moorr?

Depreciation is added to the total Investment Property Deductions calculation.

Investment Property Deductions on the platform are currently (as of April 2024) calculated as = Annualised Expenses on Investment Properties + (Interest on Investment Loans x Outstanding Balance on Investment Loans) + Total Annual Depreciation for the Current Tax Year.  This then has an impact on your overall net income, which is used in various places on the platform, such as the Home Dashboard, Wealth Dashboard, MoneySMARTS, MoneyFIT and MoneySTRETCH.

You might also be interested in

Try Moorr For Free Today

Spend money on the things you want without guilt and save for the future with confidence. You can have the best of both worlds. Achieve more, with Moorr

Privacy Policy

This following document sets forth the Privacy Policy for this website. We are bound by the Privacy Act 1988 (Crh), which sets out a number of principles concerning the privacy of individuals using this website.

Collection of your personal information

We collect Non-Personally Identifiable Information from visitors to this Website. Non-Personally Identifiable Information is information that cannot by itself be used to identify a particular person or entity, and may include your IP host address, pages viewed, browser type, Internet browsing and usage habits, advertisements that you click on, Internet Service Provider, domain name, the time/date of your visit to this Website, the referring URL and your computer’s operating system.

Free offers & opt-ins

Participation in providing your email address in return for an offer from this site is completely voluntary and the user therefore has a choice whether or not to disclose your information. You may unsubscribe at any time so that you will not receive future emails.

Sharing of your personal information

Your personal information that we collect as a result of you purchasing our products & services, will NOT be shared with any third party, nor will it be used for unsolicited email marketing or spam. We may send you occasional marketing material in relation to our design services.

What Information Do We Collect?

If you choose to correspond with us through email, we may retain the content of your email messages together with your email address and our responses.

Cookie Based Marketing

Some of our advertising campaigns may track users across different websites for the purpose of displaying advertising. We do not know which specific website are used in these campaigns, but you should assume tracking occurs, and if this is an issue you should turn-off third party cookies in your web browser.

How Do We Use Information We Collect from Cookies?

As you visit and browse Our Website, the Our Website uses cookies to differentiate you from other users. In some cases, we also use cookies to prevent you from having to log in more than is necessary for security. Cookies, in conjunction with our web server log files or pixels, allow us to calculate the aggregate number of people visiting Our Website and which parts of the site are most popular. This helps us gather feedback to constantly improve Our Website and better serve our clients. Cookies and pixels do not allow us to gather any personal information about you and we do not intentionally store any personal information that your browser provided to us in your cookies.

IP Addresses

P addresses are used by your computer every time you are connected to the Internet. Your IP address is a number that is used by computers on the network to identify your computer. IP addresses are automatically collected by our web server as part of demographic and profile data known as traffic data so that data (such as the Web pages you request) can be sent to you.

Sharing and Selling Information

We do not share, sell, lend or lease any of the information that uniquely identify a subscriber (such as email addresses or personal details) with anyone except to the extent it is necessary to process transactions or provide Services that you have requested.

How Can You Access and Correct Your Information?

You may request access to all your personally identifiable information that we collect online and maintain in our database by using our contact page form.

Changes to this Privacy Policy

We reserve the right to make amendments to this Privacy Policy at any time. If you have objections to the Privacy Policy, you should not access or use this website. You may contact us at any time with regards to this privacy policy.