The Australian Tax Office states that if you are the owner of an investment property, you are eligible to claim back two types of allowances on your property: depreciation on Plant and Equipment and depreciation on Building Allowance for residential properties constructed after 1985. What depreciation am I entitled to claim?
As per the guidelines set out by the Australian Taxation Office (ATO), if you own an investment property (whether its new or old, large or small), two areas of depreciation are available:
1. Plant and Equipment (Division 40); and
2. Capital Works on the Building (Division 43).
Different items within a rental property have different rates of depreciation based on the effective life of the item. Our quantity surveyors are professionally qualified and have the expertise and knowledge to know which items are depreciable and how savings can be made from day one of you investment.
To claim maximum tax benefits on an investment property the Australian Taxation Office (ATO) requires property investors to complete a fully compliant Tax Depreciation Report.
If you’re not claiming depreciation claims for investment property, you’re almost certainly missing an opportunity to minimise expenses. A depreciation tax report can help you to realise substantial savings through lowering your owed amount of taxes. The costs of obtaining depreciation reports are also fully deductible, so call us today, there’s no reason to skip this valuable evaluation.