Property
Depreciation is a legislation that was
introduced by the Australian Tax Office (ATO) in 1985 to encourage
the real estate industry to construct more buildings in order to
provide required rental accommodation for the increasing population
in Australia. This legislation provides large property
depreciation tax deductions for
investors and owners of rental property in Australia. According to
this rule the holding costs of the property asset are reduced
significantly when a tax depreciation
schedule is applied.
It
means that just as you claim wear and tear on the purchased equipment
or vehicles to generate income, you can also claim the depreciation
for investment property
or rental property against your taxable income. Claiming property depreciation on your investment or
rental property is an entirely legal way of reducing the tax levied
on your income-producing property in its current year.
As directed by the
ATO, quantity surveyors
are the only professionals, authorised to prepare tax
depreciation schedules for rental or
investment properties in Australia. Therefore, it is mandatory for
investment property owners to appoint only ATO registered quantity
surveyors to prepare a tax depreciation report. Moreover, the
depreciation schedules
must include the capital write down of construction cost on the
investment property in accordance with the relevant ATO tax
legislation.
So, if you are
looking for an ATO registered expert
quantity surveyor in
Australia, then Property Returns can be
your best choice. Property Returns is a leading quantity
surveying firm that has 10 offices located in every major city and
regional areas of Australia. They have an
experienced and qualified team of quantity surveyors,
registered Tax Agents, and property depreciation experts.
