At tax time, wear and tear or, more specifically, depreciation is a property investor’s best friend.
As a property gets older and items within it wear out, their value depreciates. The Australian Tax Office (ATO) governs legislation that allows owners of an income-producing property to claim a tax deduction for this wear and tear. Capital works deductions can be claimed on the building’s structure and items considered permanently fixed to the property, while depreciation can be claimed on the plant and equipment assets contained within it.
“Claiming depreciation and the associated capital works deductions is a significant taxation benefit and one which many investment property owners are unaware of. Depreciation is a non-cash deduction meaning you do not need to spend any money to claim it.”
Extract from www.bmtqs.com.au (BMT and Associates Quantity Surveyors)
A Tax Depreciation Schedule is simply a document that tells your accountant how much depreciation to claim on your investment property. BMT and Associates, with their comprehensive Tax Depreciation Schedules, have been helping our valued Clients to do just this, resulting in:
- Reduction of their taxable income
- Increased cash return
- More money being put back into their pocket
Find out how much you could be claiming using the following free Depreciation Calculator:
Rever some case studies to find out more:
- https://www.bmtqs.com.au/property-investor-case-studies/old-unit or https://www.bmtqs.com.au/property-investor-case-studies/new-three-bedroom-house-600000
Order and prepay for your Schedule before June 30 2019 and claim the fee straight back in this year’s Tax Return!