Many investors who own rental properties would love to find ways to increase the income resulting from the property and therefore increase their cash-flow.
Property investors are entitled to claim a tax deduction on their property for all the standard losses and costs including interest, insurance, real estate management fees, rates, property depreciation, repairs and maintenance. Of these deductions, the one most often missed is property depreciation.
According to Bradley Beer, the Managing Director of BMT Tax Depreciation, 80 per cent of property investors fail to take advantage of claiming property depreciation, and are therefore missing out on thousands of dollars in their pockets.
“BMT completes tens of thousands of depreciation schedules for Accountants each year. On average, these schedules find between $5,000 and $10,000 as a first full year deduction for residential property owners,” said Bradley.
“80 per cent of property investors fail to take advantage of claiming property depreciation”
Depreciation is a non cash deduction which the Australian Taxation Office (ATO) allows the owner of an investment property to claim due to the wear and tear of a building structure (capital allowance claim) and its fixtures and fittings (plant and equipment depreciation) over time. It is described as a non- cash deduction because the investor does not need to spend any money to be eligible to claim it.
To make a claim for tax depreciation, it is recommended that investors contact a specialist Quantity Surveyor. A site inspection is then completed for the property and photos taken of all plant and equipment items ensuring no depreciable assets or capital works claims are missed.
For a free over the phone assessment of the likely deductions for an investment property, please contact one of BMT Tax Depreciation’s professional staff members on 1300 728 726.
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation. Bradley is a depreciation expert with over fifteen year’s property and depreciation experience
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The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.