From the Property management desk

Are you maximising the tax depreciation and capital allowance available?

All types of income producing properties have substantial taxation benefits available to be claimed as a tax credit.  Many property investors are missing out on literally thousands of dollars in lost tax depreciation deductions. 

Both new and old properties will attract some depreciation benefit that the owner is able to claim as a tax credit.  A common myth is that older properties will attract no claim.  Therefore, it is worth making an enquiry about any property.

When a property owner has not been claiming deductions for tax depreciation, previous financial year's tax returns can be amended.  The Australian Taxation Office allows for up to the previous four year returns to be amended, in some instances the ATO may have to pay you money back!

The depreciation benefit available depends greatly on the type of building, its age, use and fit out.  Based on the Diminishing Value method of depreciation, the following scenarios are provided as an appropriate guide;

Professionally prepared Tax Depreciation Schedules are required to enable property investors to maximise the tax benefits of owning an investment property.

A Tax Depreciation Schedule is a document prepared by a qualified quantity surveyor that lists all the building and plant items in your investment property that are depreciable, the amount of "wear and tear" or "life" left in them and the dollar value you can claim as a tax depreciation.

Some examples of depreciable items include:

• Building (if post 1986)
• Window Treatments: Blinds/Curtains
• Informal/non-fixed floor coverings: Vinyl/carpet
• Whitegoods: Kitchen/laundry (if included)
• Fixed heating/cooling systems
• Garage/Carport auto roller doors
• Motorised pool equipment
• Cabinetry/ built in robes
• Ceiling fans
• Common Areas: driveways, walkways, car park

Apartment Superstore recommends multi-award winning WBP Property Group to provide their clients with tax depreciation Schedules.
WBP are offering Apartment Superstore clients a Tax Depreciation Schedule at a discounted fee of $495 (including GST) for all properties up to $1 million. All Tax depreciation Schedules are Tax deductible.
To order a Tax Depreciation Schedule for your investment property, please contact WBP direct and mention the Apartment Superstore offer.
Ph: 1300 302 581; Email: valuations@wbpproperty.com
Source: BMT & ASSOC Pty Ltd; WBP Property Group PTY LTD