Urban Land & Housing Group – Landlord Tips – What Is A Tax Depreciation Schedule?
As we approach the end of the financial year I thought it might be a good time to explain the benefits of a tax depreciation report.
Maximise returns with a tax depreciation schedule
Claiming all the depreciation property investors are entitled to on an investment property can make a big difference to their cash flow. Of all the tax deductions available to property investors, depreciation is most often missed as investors do not need to spend money for it to be claimed. It is already there to be claimed on the building structure and on existing fittings and fixtures.
“Research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in their pockets,” said Bradley Beer, Managing Director of BMT Tax Depreciation.
What is depreciation?
As a building gets older, items wear out – they depreciate. The Australian Taxation Office (ATO) allows property owners to claim this depreciation as a deduction. Depreciation can be claimed by any property owner who obtains income from their property.
To maximise taxation returns owners of investment properties should organise a depreciation schedule upon settlement. A tax depreciation schedule is a document which helps the property owners’ accountant identify exactly how much depreciation can be claimed.
I always highly recommend my landlords get these reports done as they are a 100% tax deduction and a lot of the time the landlords couldn’t believe how many things they could claim.
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Have a great weekend Jess!!