Depreciate your property and maximise your returns

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Depreciate your property and maximise your returns

Although the end of financial year is behind us, it is not too late to arrange to have a tax depreciation schedule on your investment property.

The preparation of a tax depreciation schedule by a qualified quantity surveyor will enhance the tax deductions available to you. Most importantly, your property does not have to be new to gain the benefits that a tax depreciation schedule can give you.

You should be claiming the maximum depreciation entitlements available to you. As your property gets older items begin to wear out. They depreciate in value and the ATO allows property investors to claim tax back for depreciation. The same goes for the building structure. The building wears out over time and a loss can be claimed. This is called building write off.

Many plant and equipment items within an investment property can be depreciated over their effective lives. Such items include; hot water systems, floor coverings, blinds, curtains, ovens and cook tops, range hoods, light fittings, ceiling fans, air conditioners, smoke alarms, clothes dryers and dishwashers.

In addition to assisting you and your accountant when preparing your tax return, it is important to remember the property related expenses that may be available to you in addition to depreciation.

Such deductible expenses include; interest, accounting fees, repairs and maintenance costs, borrowing costs, management fees, legal and accounting fees, insurance, mortgage insurance, rates and capital deductions.

We can assist you in recommending a tax depreciation specialist to assist you with maximising the tax depreciation deductions available to you.

The preparation cost of the report is tax deductible and will assist your accountant in the timely processing of your income tax return.