Improve Your Financial Position Not the ATO's!

By Bradley Beer, Director BMT Tax Depreciation

Investors are often surprised by the amount of items they are able to claim depreciation on inside and outside of their investment property.

The following table outlines the plant and equipment deductions available room by room in a residential property and a single level office. It also provides examples of the assets that can be claimed. Each scenario provides an average of the total depreciation claim per room.

While the above examples have only considered the Division 40 deductions available, it is important to remember that the building may also qualify for capital allowance deductions; depending on the year construction was completed.

It is vital to get a depreciation specialist to prepare a tax depreciation report. Maximising the plant and equipment items within an investment property can generate thousands of dollars at tax time. When a property owner has not been claiming deductions for tax depreciation, the ATO allows for up to the previous two year returns to be amended. In some instances the ATO may have to pay you money back.

Consult a tax depreciation specialist for an assessment of your investment property if you are unsure about your entitlements.

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