Sell with Confidence
Read More
News

Tax depreciation helps investment property owners claim more

By Emma Smith

As a building gets older and items within it wear out, they depreciate in value. The Australian Tax Office (ATO) governs legislation that allows owners of income producing property to claim a tax deduction for this wear and tear. Capital works deductions can be claimed on the building’s structure and items considered permanently fixed to the property, while depreciation can be claimed on the plant and equipment assets contained within it.

Depreciation for income producing properties defined by the ATO is claimable under two major components: Capital works deductions (division 43) and Plant and equipment depreciation (division 40).

The Australian Tax Office (ATO) recognises Quantity Surveyors as one of only a few professions which possess the required construction costing skills to calculate the cost of items for the purposes of depreciation. A Quantity Surveyor is a qualified professional who specialises in building measurement and estimating the value of construction costs. They are able to apply their expertise during various stages of construction to ascertain the cost of building works on any residential or commercial property.

Claiming depreciation and the associated capital works deductions is a significant taxation benefit, and one which many investment property owners are unaware of. Depreciation is a non-cash deduction meaning you do not need to spend any money to claim it.

BMT are registered Quantity Surveyors and will work with your accountant to ensure you get the most out of your investment.

For more information, click here

TALK TO THE PROPERTY EXPERTS

BUYING, SELLING & PROPERTY MANAGEMENT

Call us if you are thinking about buying or selling or know of someone that is

Ray White Drysdale  03 5251 5880

Up to Date

Latest News

  • Geelong property searches show price rise pressure on buyers

    Homebuyers search for property is getting more expensive, new research shows. Search activity in Geelong shows more buyers are looking at higher price points. More than one-third of buyers contained their search to homes priced between $500,000 and $750,000, the REA Insights data shows this year. But the number searching below $500,000 dropped … Read more

    Read Full Post

  • Geelong home values rise as show goes on despite lockdown

    A sense of buyer urgency amid the recent housing boom continued to drive up Geelong home values in May. The city’s median dwelling value jumped 1.8 per cent last month to $684,304, the latest CoreLogic Home Value Index revealed on Monday. In comes as capital cities outpaced regional markets nationally … Read more

    Read Full Post