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Due to the recent economic reforms and certain government policies, real estate has become a very lucrative business today. A steady rise in the property prices in the last few years has motivated several individuals to invest in the real estate market. Likewise share trading, real estate trading has become a bread earning career for several traders today. Usually, real estate trading includes buying, selling and broking (brokerage earned by selling properties owned by someone else). However, several investors also make good money from rental properties (residential as well as commercial). Along with the income generated from the rent, investment property owners can also make money by taking advantages of property tax depreciation deductions allowed by the Australian Tax Office (ATO). So what is property depreciation? According to the ATO, investment property owners are allowed to claim tax depreciation deductions for costs incurred in earning income generated from rent. Therefore, the expenses associated with the acquisition of different assets, that wear and tear over their "effective life" can be written off over a period of time. These tax deductions are generally known as investment property depreciation, and are claimed through a tax depreciation report or schedule. What is a tax depreciation report? A tax depreciation report or schedule is a professionally prepared document that highlights depreciable items such as plants and equipment as well as capital costs. A comprehensive tax depreciation report computes the value of each depreciable item in the building, including installation costs, delivery costs, and the expenses associated with bringing the plant into full operation. Major traps that usually people fall into: Failing to claim tax depreciation because they think the property is too old Claiming depreciable items as a repair for deduction. Are only new properties depreciable? Investment property owners are affected by a common misconception that only new properties are eligible for property depreciation. Actually this is not true. Although, it is true that new properties attract higher tax depreciation, but older properties can also provide good returns. In fact, in 99% cases, some tangible value of deductions is attainable. Well, if you want to get a professional tax depreciation report or schedule prepared for your investment property, don’t worry, Property Returns is here to offer you the most effective way to ensure that you maximize your investment property depreciation. Our professional quantity surveyors are dedicated to provide the best service to our clients and also ensure full attention while handing all matters, which ensures that our clients receive maximum tax depreciation deductions. Property Returns’ services are unique, and the benefits you get with us are: We provide Australia wide service Our fee is 100% tax deductible We will beat any competitors written quotation We have an experienced and qualified team
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