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We’re going to be talking to Omar Raslan of Key Property Inspections again on the topic of tax depreciation, what it is and how it can unlock the savings potential of your property.
Tax Depreciation – Unlocking the potential of your property
How You Can Save More, By Working Less
We’re going to be talking to Omar Raslan of Key Property Inspections again on the topic of tax depreciation, what it is and how it can unlock the savings potential of your property.
We won’t steal his thunder here, but let’s briefly go over tax depreciation as a warm up.
Tax Depreciation: What Is It?
When you buy a property for income producing purposes (aka an investment property) you are able to claim the wear and tear of certain aspects of that property against your taxable income.
Those aspects can be divided into two categories:
Plant and Equipment: items inside the building like ovens, carpets, blinds etc.
Building Allowance: construction costs, like concrete and brick work
Now what exactly you can claim does depend on the age of your property, and when you purchased it. However in almost all instances you will be able to claim something.
When you contact a quantity surveyor you’ll discuss all this information with them, and their Depreciation Schedule will reveal to you what and how much you can claim.
Tax Depreciation is a key tool you should be using to unlock the potential of your investment property.
Not A Job For An Accountant.
Oddly enough accountants can’t prepare a tax depreciation schedule.
If your property is built after 1985 you’ll need a quantity surveyor to prepare one for you, but once they have, you can hand this document over to your accountant to start reaping the rewards.
Nearly 90% of people don’t claim tax depreciation on their properties, losing potentially thousands of dollars in savings they could otherwise have had. It’s almost too easy to get one done, so there’s no excuse for new or experienced investors to not do it.
If you want to learn more about tax depreciation listen to the upcoming episode of our podcast to learn more.
For more investment advice get in contact with us or check out our other blogs and podcast episodes. We’re here to give you the confidence you need to invest.
