While many people have purchased investment properties and enlisted the help of a property manager and conveyancer, purchased landlord insurance and even replaced the locks, few of them are aware that they are able to claim depreciation of their property on their tax return each year as a legitimate expense. This could result in savings of a few thousand dollars per year on your tax bill.
A Large Tax Deduction is Possible
Too many investment property owners are under the impression that their accountants are automatically doing this on their behalf. This is seldom the case though, which means that there is a strong chance of you not having an Australian Tax Office (ATO) compliant Tax Depreciation Schedule.
If you think it is going to be too much effort to claim depreciation on your investment property or that ‘you might not get that much of a refund’, think again. Property owners have reported potential savings of anywhere from as low as $1,000 or $2,000 to as much as $15,000 when doing this. These funds can then be used elsewhere for property improvements or general home maintenance projects at some point.
Property Age is Not Important
As determined by the Income Tax Assessment Act of 1997, it is your right as an investment property owner to claim depreciation. This means that no matter how old or new your investment property is, there will normally be a fairly significant amount of depreciation that you will be permitted to claim if you have recently changed the property’s status to income earning.
How we can assist you with Depreciation
When working with us to process your investment property depreciation, you will be provided with full peace of mind because we only make use of fully qualified and experienced quantity surveyors, all of who are also registered tax agents.
After a property inspection has been carried out, you will be provided with a full tax depreciation report that will include the following information:
- Photos of your property
- Complete and accurate calculations for the remainder of the depreciable lifetime of your property (up to 40 years)
- Fully labelled floor plans
- Fixed furnishings and other furniture (where applicable)
- Low value pooling
- Owner’s corporation or body corporate depreciation
- Calculations utilising both ATO-approved methods (Diminishing Value and Prime Cost)
To ensure that you are able to obtain the maximum possible value of depreciation for your investment property, you will be required to provide your accountant with a professionally compiled Tax Depreciation Schedule. We are able to assist you with this process.
Once your property has been inspected and you have received your Tax Depreciation Schedule, you will be able to look forward to receiving that tax refund you are entitled to. Our friendly and professional team is available to answer any questions or address concerns you may have regarding the process.
Call us today on 03 9848 5933 if you would like to find out more about Tax Depreciation Schedules on your investment property.