Each year many investment property owners are missing out on depreciation claims, losing out on thousands of dollars in potential tax savings. Depreciation is a legal tax deduction to account for the decline in value of the asset and can drastically help maximise your tax savings.
If your property was built or renovated after July 1985 you will be able to claim for the Building/Capital Works allowance which includes the structure itself as well as the fixed assets such as toilets, tiles and built-in furniture. Plant and Equipment items such as ovens, carpets and blinds etc may also be claimed for certain eligible properties.
Unlike the majority of tax deductions, depreciation is a non cash expense meaning you don’t actually spend the money that you are claiming every year. You do however need a fully-comprehensive, ATO-complaint depreciation schedule and this is where Networth accounting can help you. For a discounted price of $660 – which is also tax deductible - we can arrange for a depreciation report to be completed on your behalf via Washington Brown who have been an industry leader for 40 years. The depreciation schedule will last the lifetime of the property meaning a one off payment of $660 will help save you thousands in the future.