Property Tax Depreciation
All property investors should investigate the potential tax savings available with a correctly prepared tax depreciation report. Property tax depreciation refers to the annual wear and tear of a building and its fixtures and fittings. As your investment property ages it gradually wears out, this wear and tear can be claimed as depreciation and offset against the taxable income generated by the property. Property investors can maximise this deduction with a tax depreciation schedule or report prepared by a qualified quantity surveyor.
What is depreciation?
The Australian Tax Office (ATO) allows owners of income producing properties to claim property depreciation on their investment properties which in turn provides substantial tax savings and increased cash flows. Over time, investment properties and their fittings incur “wear and tear”, this “wear and tear” is the amount of depreciation the ATO allows the investor to claim. If you have bought or plan to buy an investment property in Melbourne, understanding and using a property depreciation schedule is essential. Mintax have developed a simple, user friendly process that identifies all eligible claims, placing them in a concise, easy to read 40-year schedule.