Every owner of an income producing investment property is eligible for significant taxation benefits in the form of property depreciation.

Despite this, according to BMT Tax Depreciation’s Chief Executive Officer Bradley Beer, 80% of property investors fail to take advantage of depreciation and therefore miss out on thousands of dollars.

“Investors generally can claim an average of between $5,000 and $10,000 in deductions in their first year’s depreciation claim,” says Bradley.

This is no small amount, so for investors wondering what property depreciation is and how to claim it, we’ll explain.

Australian Tax Office (ATO) legislation allows investors to claim a deduction for the decline of a building structure (capital works deduction) and for the depreciation of plant and equipment items contained an investment property.

Both new and older properties will attract a depreciation claim. Though the ATO restricts the owners of older residential properties on making a capital works depreciation claim for buildings in which construction commenced prior to the 15th of September 1987, depreciation of plant and equipment can be claimed regardless of a buildings age. Property owners may also still be able to claim deductions for any recent renovations, even if they were completed by a previous owner.

To find out how much depreciation can be claimed for your property, consult with a specialist Quantity Surveyor such as BMT Tax Depreciation. They will perform a site inspection of the property and complete a tax depreciation schedule that outlines all of the available claims.

To find out what deductions may be available for an investment property, request a depreciation estimate here.

To arrange a depreciation schedule for a property, request a quote here.

Investors who have any queries regarding depreciation for their property should contact BMT and speak to their friendly staff on 1300 728 726.

Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.