murraybridge
Are you maximising your tax returns?
Investment properties owner naturally want to get the most benefits possible from their year tax return, however many are missing out on thousands of dollars a year simply because they are failing to claim back on property depreciation.
What is Depreciation?
Many find property depreciation confusing, but it doesn’t need to be. The Australian Tax Office [ATO] recognises that items such as buildings and furniture depreciate in value as they age, and this loss in value can essentially be claimed back as a tax deduction.
A common misconception is that depreciation benefits are only available on brand new properties, however while it’s true that newer properties stand to benefit the most, depreciation claims can be made on older properties too.
There are two types of claims that can be made:
Capital works deduction – A claim can be made for buildings up to 40 years old, this is based on the expected life of the building itself.
Depreciating assets – Properties of all ages can claim on depreciating assets, which are removable items within a property such as light fittings, carpets and stoves etc.
How to make a claim?
The first thing you need to do to ensure you are getting your full benefits is to find a qualified quantity surveyor. They will need to inspect your property and prepare a depreciation schedule for your accountant to use.
A quantity of surveyor’s fees are tax deductible and a depreciation schedule is normally good for a number of years.
