Tax Depreciation Tips for Property Investors

Tax Depreciation Tips for Property Investors

As a property investor, you could be entitled to tax savings by claiming depreciation. To claim this, you’ll need a depreciation schedule.

 

A tax depreciation schedule is a report with details of the depreciation entitlements available within your investment property. This allows you to enjoy significant tax savings as your property investment grows.

There are two types of assets you can commonly claim depreciation on, capital allowances and plant and equipment items.

Capital Allowances

Capital allowances are based on the historical construction cost of the property. Capital allowances can be claimed on your original residential property after the cut-off date of the 15th of September 1987 or on any subsequent qualifying renovations or improvements completed by either the previous owner or yourself.

Plant and Equipment Items

The Australian Taxation Office defines plant and equipment items as “loose assets” or control panels for automated systems. The ATO annually releases a list of these assets. Some of them include: air conditioners, blinds, carpets, hot water systems, exhaust fans and bathroom accessories.

As a property investor, you should be working with a team of specialists, including a financial advisor or accountant who you can consult on how to prepare a depreciation schedule. Ask for a depreciation schedule when you purchase a property.

Stacey Lee Realty has experienced Property Managers to handle the task of maintaining your investment and ensure your investment is working for you with minimal hassles. Call us today at 07 3399 2966 or visit www.staceyleerealty.com.au