Claiming Tax Deductions
By Bradley Beer on 11 Apr 2013
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It is so important for property investors to claim all the relevant deductions available to them, especially with tax time just around the corner. Unfortunately, depreciation is the most commonly missed deduction because it is a non-cash deduction.
The ATO allows property investors to claim a deduction back at tax time to compensate for the property getting older, and therefore depreciating in value. Our research shows that a high percentage of investors don’t claim property depreciation, not realising they can! Every owner of an investment property, new or old, commercial or residential should be claiming their maximum depreciation entitlements.
Specialist depreciation-focused quantity surveyors prepare Capital Allowance and Tax Depreciation Reports for investors, outlining deductions available per financial year for forty years.
This report essentially shows how much your taxable income will be lowered each year by claiming depreciation. A report can also be prepared to easily recover missed depreciation benefits by amending previous tax returns.
Obtaining a property depreciation report from a specialist quantity surveying firm is important to make sure you are claiming all of the items you are entitled to, and not claiming anything you shouldn’t be.