Do you claim wear and tear on that car you purchased that you use for work? Well many investors aren’t aware that you can also claim the depreciation of your investment property against your taxable income.
Informed property investors know all about property depreciation. Infact some even take this into account before they purchase their next investment property. But this isn’t just for the professionals, anyone who purchases a property for an income producing purpose is entitled to depreciate both the items within the building and the cost of the building itself against their income.
I would hate to think the amount of money that goes unclaimed by property investors who just simply haven’t been informed- all it takes is a qualified quantity surveyor to inspect your home and prepare a report for your accountant. The cost of the report varies on the size, location and numerous other factors of the property. However generally you will find that most leading quantity surveying companies offer you a guarantee to save you twice your fee in the first year, or they will give you your money back…. Their fees are also tax deductible.
If your residential property was built after July 1985 you will be able to claim both Building Allowance and Plant and Equipment. If construction on your property commenced prior to this date, you can only claim depreciation on Plant and Equipment. But it will still be completely worthwhile as the savings can be substantial.
It’s very common for Quantity Surveyors to liaise directly with the tenant or your property manager in order to cause minimal disruption to all parties.
If you would like any further information, or you would like me to forward you company details that I have dealt with in the past please feel free to contact me at any time.