Property depreciation is the wear and tear of a building and its fixtures and fittings over time. For any income-producing property, the Australian Tax Office (ATO) allows property owners to claim this depreciation as a tax deduction each financial year. A tax depreciation schedule is required to maximise the depreciation deductions available and to substantiate the deductions in a tax return.
Most people are under the misconception that depreciation is only claimable on new (investment) properties and that isn’t true. Depreciation can make a great deal of difference to your tax return whether your property is positively or negatively geared. You should always discuss your concerns with your accountant and an experienced depreciation company. Additionally, most reputable companies will provide you with a minimum claim guarantee to ensure that the report is worth your while.
BMT Tax Depreciation are alliance partners with First National Real Estate. Give them a call today for a free assessment of your likely deductions – 1300 728 726.
Happy residential investing!