Did you know, if you are earning income from a residential investment property, you may be eligible to claim thousands of dollars in tax deductions for property depreciation?
Around 80 per cent of property investors currently don’t maximise their depreciation claims, an oversight which can lead them to miss out on thousands of dollars in their pockets.
So what is depreciation? BMT explains.
Legislation enforced by the Australian Tax Office allows investors to claim deductions for the gradual wear and tear of building structures and plant and equipment items contained on any income producing property, including residential investment properties.
Both new and older properties attract depreciation claims. While restrictions apply for the capital works depreciation claims that can be claimed on residential properties in which construction commenced prior to the 15th of September 1987, there are no date restrictions on the deductions which can be claimed for the plant and equipment component. Owners of older properties may also be entitled to claim deductions for recent renovations completed within the legislated dates, even if these were completed by a previous owner.
To learn more about depreciation and the deductions available, investors can click here. Alternatively, speak with one of the expert staff at BMT on 1300 728 726.
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.