80% of Property Investors Miss Out On This Crucial Tax Deduction!

Depreciation is the second-biggest tax deduction that property investors can claim for the natural wear and tear of their property. There are millions of property investors in Australia, and yet many fail to maximise its full benefit.

Capital works depreciation refers to claims on the overall structure of the property –  together with fixed items like toilet bowls, roofs and doors. These fixtures and the overall cost of the house can be subject to a 2.5% annual deduction if built after 1987.

Furthermore, the ATO recognises over 6,000 different depreciable assets that can be easily removed or fitted within the property. These fall under plant and equipment depreciation that include carpets, curtains and ceiling fans subject to wear and tear.

Depreciation is an ideal tax deduction because investors don’t need to spend any cash to be eligible during the financial year. It is definitely ‘something for nothing’ that investors should not be missing out on.

Despite all these benefits, multiple property investors still don’t claim the full deduction because they don’t want to spend the money acquiring a report from a quantity surveyor. Don’t make this common mistake! It is recommended to seek help from specialist quantity surveyors that can provide you with a comprehensive tax depreciation schedule to ensure your deductions are maximised. You’ll find that the money you get back from the return can be thousands of dollars more than the cost of hiring them. You’ll even have the peace of mind knowing the job is done correctly, and free of hassle.

Don’t be part of the estimated 80% of investors who don’t take full advantage of these tax benefits! If you just learned about this now, you have a chance to back-claim up to two years of depreciation to adjust your tax return. Contact an experienced member of Gleeson Quantity Surveyors to get the support you need to claim thousands back in your tax return.