It’s the start of a new financial year so many of us will be preparing our annual income tax return. We all want to maximise our return but according Bradley Beer of BMT tax depreciation “research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in their pockets”.
This is an astounding statistic considering depreciation is a legitimate deduction which could save investors significant tax, this will in turn make a big difference to your cash flow.
Depreciation for residential property considers;
- Wear & tear as a residential building ages
- Decline in value of a building structure
- Plant and equipment, of any income producing property.
Quantity Surveyors are one of the few professionals recognised by the Australian Tax Office (ATO) to have the appropriate skills to estimate construction and building costs for depreciation (Tax Ruling 97/25). Every residential investment property needs a tax depreciation schedule to claim maximum investment property tax deductions. A specialist Quantity Surveyor will prepare a tax depreciation schedule outlining all the depreciation deductions claimable for the property for the effective life of your property as set by the ATO.
If you would like to take advantage of this ruling contact us and we can put you in contact with the experts.