Maximise depreciation deductions from your investment property

80 per cent of investors miss out on the depreciation deductions available from their investment properties.

One of the reasons depreciation is often missed is because investors are unaware they are eligible to claim deductions for the wear and tear that occurs to the building structure and any plant and equipment assets contained.

Below are a few points investors should be aware of to ensure they maximise deductions:

  • The property does not need to be new. Both new and old properties will attract some depreciation deductions. A common myth is that older properties will attract no claim. It is worth making an enquiry about any property.
  • Investors can claim depreciation for renovations. Even if a property was renovated by a previous owner, the new owner may be entitled to depreciation deductions for these renovations – so long as they occurred within the legislated dates.
  • If you’re planning on renovating a rental, speak with a Quantity Surveyor first. When renovating, ensure to ask a Quantity Surveyor to inspect the property prior to completing any renovations. There may be additional deductions available for items being scrapped and removed from the property. A full site inspection before and after will ensure no deductions are missed.
  • BMT guarantee deductions. Investors can claim between $5,000 and $10,000 in deductions on average as a first full year deduction from their investment property. If BMT don’t find double their fee worth in deductions in the first financial year claim, there will be no charge for their services.
  • Previous year’s tax returns can be adjusted. If depreciation has not been claimed, the Australian Taxation Office allows investors to go back and amend the previous two financial year’s claims.

To learn more about depreciation deductions for your investment property, visit the BMT Tax Depreciation property investor’s page on their website by clicking here.

To request a quote, use BMT’s simple online form here.

Alternatively, for a free estimate of the depreciation deductions available in any property, speak with one of our expert staff on 1300 728 726 today.