Rental property business is a growing
sector!
People are realize that this is a great
way to earn!!
Also, there are various favorable tax
advantages that investors can benefit from!!!
As you might already know, a rental
property is considered as an investment property and not a
residential estate. Thus, the tax computation is also different. So,
how does the property owner benefit from it?
You can offset your rental income by
claiming the property depreciation of your investment
property, and the appliances as well as mechanical systems it
contains, because they age. This tax depreciation is not taken
all at once, but calculated over time.
Since having a rental property is a
business, the income generated from it will be treated as your gross
income. Therefore, the expenses incurred, related to running the
business shall be deducted. There are several expenses that can be
deducted from the gross income, among those are cleaning and
maintenance, the interest on mortgage, insurance, advertising for
tenants and property depreciation.
Property depreciation is one of
the most common tax advantages that you can benefit from. This is
taken from the gross annual income, thus providing significant
savings for the rental property owner.
Well, it’s not viable for everyone to
prepare a tax depreciation report or depreciation
schedules, because it requires proper knowledge and years of
experience. Therefore, the Australian Tax Office
(ATO) has authorised only certified and experienced Quantity Surveyors for preparing tax
depreciation reports or depreciation schedules
for both rental and investment properties.
So, if you own a rental or investment
property in Australia, and are looking for a reputed Quantity
Surveyor or
Quantity Surveying firm
that can prepare perfect depreciation
schedules for you, look no further than Property
Returns!!!
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