Every
year several Australian property investors lose out crucial tax
depreciation benefits worth thousands of dollars. Actually, they fail
to claim the valid property tax depreciations. Not claiming the
property depreciations is like not charging rent to your tenants.
One
of the major reasons why property investors
don't have a tax depreciation report is simply because their
accountant never asked them to get one. Maybe because even the
accountant is unaware about it.
Property depreciation is a form of income that
property investors can make from tax depreciation deductions. The
Australian Taxation Office (ATO) allows investment or rental
property owners to depreciate the value of their properties and claim
the amounts as tax deductions against the income tax that they
have to pay on the profit. Generally maximum
property depreciation deductions can be achieved on new properties,
although old properties are also eligible for significant tax
depreciation benefits. But, the depreciations are incurred more on
newer properties.
Therefore,
when investing in property, you must prioritize on purchasing brand
new properties which offer high levels of depreciation. And, we can
utilize the property depreciation benefits to sustain the investment
property while it grows older. As authorised by the ATO, depreciation schedules can only be obtained from registered quantity
surveyors in Australia, while your accountant can be consulted for
tax deductibility of the items included in the tax depreciation
report.
Hence, it's
recommended to all property investors to at least inquire whether or
not their property is eligible for property
depreciation deductions on their property!!
