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Real Estate Valuation, Taxation and Depreciation

10th October 2012
By Ariel Linford in Taxes
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This article speaks about the real estate properties, sale and purchase and much more. Before we go in to depth, let’s ponder out what actually it is. Imagine you are an owner of a building and you want to get an idea about the worth of your property. The first person who comes into your mind is an estate agent/estate appraiser who can help you to figure out the value of your property. This whole process is called as Property Valuation or Real Estate Appraisal. This gives us an estimate value of our property. Often we have heard about the term Market Value. This is exactly same as Land Valuation. Appraisals are needed because real estate transactions occur very infrequently. Not only that, every property is different from the other. Furthermore, all properties differ from each other in their location, which is an important factor in their value. So specialist and qualified Land Valuator are needed to advice on the value of a property.

Often when you buy or sell any property, a special kind of tax is levied on it which is called Capital gains tax valuation (CGT). Thus is a tax on capital gains, The most common capital gains are levied from the sale of stocks, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations. In Australia, the sale of personal residential property is normally exempted from Capital Gains Tax,

Every asset or building that you own has to depreciate at a regular interval. Depreciation is done to find out the exact value of that asset. It is an important accounting term that is applied on every physical and non physical thing. Once the depreciation is done for the specific period, it tells the current value of that asset for that period of time. Therefore, depreciation is an impotent work that has to be done every year. Appraiser is the persons or group of people that is responsible for the total evaluation and estimating the current value of an asset. They are expert in figuring out the defects in the asset and can tell you the approximate value of that asset.

The method to find the Annual Depreciation Expense is:

Cost of Fixed Asset – Residual Value / Useful Life of Asset (yrs)

A Depreciation schedule is an accounting procedure for determining the amount of value left in an asset. Depreciation schedules are used in the calculation of taxes as a business is allowed to deduct each year a fraction of the total value of certain assets. Some Depreciation Methods are:

Straight Line Depreciation, Declining Balance, Activity

If you are looking for a company who deals in the proper tax depreciation schedule report and property work, DK Property Professionals is the best choice. They are expert in depreciation and property work. DKPP’s expert knowledge of depreciation ensures client’s needs are met with the highest level of professional and personalized service, strictly adhering to cost and time requirements.

DK property professionals follow a perfect property depreciation schedule to depreciate your asset or building and help you in knowing the exact value of your asset. Property depreciation schedule has some important key points that are followed by the company for the proper evaluation of your building. As the building depreciates every year, you can minimize the tax costs. Refer to DK property professionals for their professional and skilled workers services.

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About the Author
Ariel Linford, an idealist, holds a literate and erudite milieu. She entered this ever affluent, thriving and enchanting scenario called writing in 2009 and has been hyping herself and the world with her distinctive comprehension since then. Her ample craft encompasses writing description, blogs and articles.
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