A common myth amongst property investors is that tax depreciation is only of value for new properties when in fact plant and equipment items can attract a tax depreciation claim regardless of a building’s age. Owners of established and renovated homes can benefit from consulting a quantity surveyor.
As a building wears with age it generally depreciates in value. The Australian Taxation Office allows property investors to claim a deduction for depreciation relating to the building, plant and equipment items of an income producing property. This deduction can reduce the property owner’s taxable income so they pay less tax, which is music to an investor’s ears.
A quantity surveyor generally completes a tax depreciation report which considers two main elements being capital works allowance which is a deduction for the structural component of the building and plant and equipment which considers the effective life and depreciation available on removable assets.
Items to consider are things like carpet, blinds, appliances, heating, cooling and hot water systems, light fittings and many other items.
Professionals Wantirna provide a wide scope of service and information to their landlords and can refer you to a tax depreciation specialist. Simply contact 9801 2222 for assistance with your investment property.
