Guest Blog: Brad Beer with 3 property depreciation tips

By the resi financial blog team, 02 April 2014

3 property tax depreciation tips

Three property depreciation tips

Smart investors claim depreciation. Here are three tips to help investors maximise their claim:

1. No property is too old
A common myth is that older properties attract no claim. However both new and old properties attract depreciation deductions.

2. Claim capital works deductions and plant and equipment
Property depreciation can be claimed as a capital works deduction for the structural element of the building and for the plant and equipment assets contained within the property.

Plant and equipment assets can be easily removed from the property, as opposed to items that are permanently fixed to the structure. These assets depreciate based on their effective life as set by the ATO.

Capital works deductions apply to the structural element of a building such as bricks, mortar, walls, flooring and wiring and are based on the historical cost of the building. These deductions can only be claimed on residential buildings constructed after the 18th of July 1985.

3. Claim renovations
An investor is entitled to claim depreciation for any renovations done to a property, even if they were done by a previous owner, as long as they were completed within the qualifying dates.

Renovations may not always be obvious, for example new plumbing, water proofing, or electrical wiring. A Quantity Surveyor will discover any renovations during a site inspection of the property and calculate the depreciation accordingly.

For tips on depreciation for your investment property, consult one of the specialist staff at BMT Tax Depreciation.

Call: 1300 728 726.

Article by Bradley Beer - courtesy BMT Tax Depreciation.

Categories: BMT, Depreciation, Guest blog, Tax