Depreciation is an aspect of property investing that most property investors fail to take advantage of.
And it costs them thousands of dollars every year!
So if you’re not claiming depreciation already, we’re going to explain what it is and more about how it can improve your returns on your property.
How can property investors take advantage of depreciation on their property?
Let’s hand over to Bradley Beer, CEO of BMT Tax Depreciation to explain.
While the value of your property goes up over time the value of the items within it will tend to go down, or ‘depreciate’ over time! This is just like buying a new car for example.
When these items like carpet and light fittings lose their value over time, the ATO will actually give you tax exemptions, because of the loss of value.
Wow, it turns out the Tax Office can be kind after all!
All sounds pretty amazing doesn’t it? So you must be asking…
How much can I save through claiming depreciation on my property?
Back to you for this one Bradley…
“Average return for the last financial year was $9,000”.
Gee, that’s not too bad.
Importantly don’t forget! Old properties can claim depreciation as well, just not as much as newer properties.
So enough beating around the bush. How do you get started?
Well even though this is tax, it’s not as simple as going to your accountant. You need what is called a depreciation schedule. This is done by a Quantity Surveyor. So let’s go back to Bradley one last time…
Can you use an accountant to claim depreciation?
There is no question that depreciation deductions are the most under-utilised part of property investing.
At Sydney Listings, our property management team gets proactive making sure our landlords and investor community make the most of depreciation. We partner with quantity surveyors and organise for the information and inspections required to take place.
We also extend a courtesy to others in the community to help you organise this. If you’d like our help, please contact us or email firstname.lastname@example.org.