Owners of rental properties that haven’t been claiming this one deduction could be missing out on some serious cash.
Cashflow is critical for investors right now and with tax time approaching everyone is looking for ways to legitimately boost their tax return as much as possible.
This one deduction could help super charge this year’s tax return by thousands of dollars.
Tax Depreciation Deduction
Tax Depreciation is the deduction that you can claim for the wear and tear and ageing of an investment property.
Yearly deductions are typically thousands of dollars and it is often one of the single biggest deductions claimed by smart investors.
“Whether the property is new or old, there could be thousands of dollars of tax deductions available to owners for depreciation. Even properties bought second-hand can have thousands of dollars to claim in the building and renovations completed over time. Our depreciation schedules typically report $6,000 – $12,000 in deductions for the owners in just the first year.” – Mark Wilkins, Director of Capital Claims Tax Depreciation.
An investor can claim a tax deduction for depreciation just like any other common expenses such as:
- Council rates
- Bank and professional fees
- Repairs and maintenance
All that is needed is a depreciation schedule prepared by a professional quantity surveyor. Ordering a depreciation schedule is simple and the one-off fee for a 40 year report (years of reported tax deductions) is 100% tax deductible.
Bonus – If the investment property has been owned for a few years and the depreciation claims have never been made, landlords could be looking at a bumper return. Most investors have the ability to amend returns for previous years and back-claim tens of thousands of dollars in unclaimed deductions.