What is Property Depreciation?
Depreciation is a tax deduction available to property investors. It allows you to claim a tax deduction for the wear and tear over time on any old or new investment property. Basically, it recognises that the building itself plus its internal furnishings and fittings will become worn over time and eventually need to be replaced.
Vogue Property assists its clients by arranging tax depreciation schedules as part of the ongoing management service. This added service benefits our clients and their accountants or tax agents better understand how to claim a wide range of potential tax deductions for your commercial, residential, industrial, retail or agribusiness investment property.
The Australian Tax Office (ATO) allows for the costs of construction and fit out of investment properties to be claimed back over time, against the income earned on a property. The value of items such as ovens, cooktops, air conditioners, carpets, blinds etc.. can all be depreciated. A tax depreciation schedule details the eligible amounts that can be claimed in a tax return over a 40-year period.
As with any tax deduction, property depreciation basically reduces your taxable income. That means more money in your pocket to reinvest in your property or to spend on yourself or your family.
"Tax Depreciation can produce significant financial gains for property investors, business owners & landlords to maximise their tax return on a property investment"