Property investors are often unaware that they are eligible to claim a deduction due to the wear and tear of a building’s structure and its fixtures. This claim is called depreciation.
Legislation set by the Australian Tax Office (ATO) allows investors to claim depreciation in two ways; as a capital works deduction for the decline of the building structure and for the depreciation of all plant and equipment items contained both inside and outside of the property.
“All types of properties, both old and new, will attract a depreciation claim. Though the ATO restricts owners of older residential properties on making a capital works depreciation claim for buildings constructed prior to 18th of July 1985, depreciation of plant and equipment can be claimed regardless of a buildings age. The owner may also be entitled to claim deductions for any recent renovations, even if they were completed by a previous owner,” said Bradley Beer of BMT Tax Depreciation. “The fee for preparing a tax depreciation schedule is 100% tax deductable. Order before June 30 so you can claim the fee straight back in this years tax return.”
To find out how much can be claimed on any investment property, you can consult with a specialist Quantity Surveyor such as BMT Tax Depreciation. They will perform a site inspection of the property and complete a tax depreciation schedule which outlines all of the available deductions for the life of the property.