With the end of financial year upon us, now is the time to re-visit the tax advantages of owning an investment property.
It is timely now to arrange to have a tax depreciation schedule on your investment property.
The preparation of a tax depreciation schedule by a qualified quantity surveyor will enhance the tax deductions available to you. Most importantly, your property does not have to be new to gain the benefits that a tax depreciation schedule can give you.
You should be claiming the maximum depreciation entitlements available to you. As your property gets older, items begin to wear out. They depreciate in value and the ATO allows property investors to claim tax back for depreciation. The same goes for the building structure. The building wears out over time and a loss can be claimed. This is called building write off.
Many plant and equipment items within an investment property are able to be depreciated over their effective lives. Such items include hot water systems, floor coverings, blinds, curtains, ovens and cook tops, range hoods, light fittings, ceiling fans, air conditioners, smoke alarms, clothes dryers and dishwashers.
In addition to assisting you and your accountant when preparing your taxation return, it is important to remember the property related expenses that may be available to you in addition to depreciation.
Such deductable expenses include interest, accounting fees, repairs and maintenance costs, borrowing costs, management fees, legal and accounting fees, insurance, mortgage insurance, rates, and capital deductions.
We can recommend a tax depreciation specialist to assist you with maximising the tax depreciation deductions available to you.
The preparation of the report is tax deductible and will assist your accountant in the timely processing of your income tax return.