Jimboomba Did you know that as the owner of an investment property, you’re entitled to claim depreciation on the home, its fixtures & fittings?
Depreciation is a significant taxation benefit, and surprisingly one which many investors are unaware of. It is also a non-cash deduction, meaning you do not need to spend any money to claim it.
When the end of financial year is nearing, it is the ideal time to have a Depreciation Schedule Report completed by a Quantity Surveyor. Simply hand this report to your accountant and they will include it with your income tax return.
It’s that easy!
Facts about Property Depreciation
- As a building gets older and items within it wear out, they depreciate in value
- All properties will attract depreciation deductions – new property and previously owned property qualify
- You are legally entitled to claim the depreciation of your investment property against your taxable income
- A tax depreciation schedule should take into consideration whether there are multiple owners of the investment property & divide the benefits accordingly
- A depreciation schedule outlines the deductions available on a specific property for the life of the property and is used by the property investor’s accountant when preparing a tax return
- There are more than 1,500 items identified by the ATO as depreciable assets
- Research shows that 80% of property investors are failing to take advantage of property depreciation tax depreciation schedule will increase the cashflow of your investment property
For more information regarding Depreciation contact our team today (07) 5547 7288