Claim Tax Depreciation Deductions on Your Investment Property
According to tax experts, claiming depreciation deductions on your investment property is a simple way to save thousands of dollars at tax time. However, 80% of property investors aren't claiming it!
What is Tax Depreciation?
Over time your property and the plant and equipment within it wear out. The Australian Tax Office (ATO) allows you to claim depreciation on these items every year for the effective life of each item. This will decrease the tax you pay on the income from your investment property, thereby saving you money at tax time!
How do you claim Depreciation Deductions?
A qualified Quantity Surveyor can prepare a simple report called a Tax Depreciation Schedule for your property, which will include all the items in your property that are decreasing in value. Your accountant will use it when preparing your tax return to ensure you receive the maximum tax-deductable depreciation you are entitled to.
Depreciation Facts
- There are more than 1500 items identified by the ATO as depreciable assets, so regardless of the age of your property it will contain some items on which you can claim depreciation.
- Previous tax returns can be adjusted, if you have not been claiming all the deductions you are entitled to. The previous two financial years claims can usually be amended.
- The fee charged by a Quantity Surveryor to complete a tax depreciation schedule is 100% tax deductible and can be claimed in your annual tax return.
Whilst we do not recommend particular tax depreciation companies, clients of All Residential Real Estate have used the following companies to prepare tax depreciation schedules for their investment properties in the past. So click on one of the links below, talk to a tax depreciation specialist, and become one of the 20% of property investors who are enjoying more cash back from the ATO!
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