Depreciate and Appreciate

 

Depreciate and Appreciate

Property investors who own income producing properties are eligible for significant taxation benefits. 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. Depreciation is often missed because it is a non-cash deduction – the investor does not need to spend money to claim it.

What is depreciation?

As a building gets older, items wear out – they depreciate. The ATO allows property owners to claim this depreciation as a deduction. Depreciation can be obtained by any property owner who obtains income from their property.

Depreciation Facts:

  • Investors can adjust previous years’ tax returns – claim missing deductions from the ATO.
  • An investment property does not have to be new – older properties also have good depreciation potential.
  • By claiming property depreciation on an income producing building an investor will pay less tax.

Obtaining a depreciation schedule that maximises deductions may result in an investment property returning a positive income.

Quantity Surveyors are qualified under the tax legislation ruling TR97/25 to estimate construction costs for depreciation purposes and are one of the few professionals who specialise in providing depreciation schedules.

Sourced from BMT Tax Depreciation