Claiming tax depreciation
Experienced property investors are very familiar with this benefit.Most investors will take depreciation into account before buying and investment property. When buying a property for income purposes you are entitled to depreciate the building and the cost of the building – against your income.
It requires a qualified quantity surveyor to inspect your home and draft a report for your accountant. The savings can be huge.
Claiming legitimate tax deductions such as depreciation has been highlighted in new reports that governments throughout Australia collected more than $1 billion in taxes every day during the June 2017 quarter.
This level of taxation is reported in the latest government finance statistics that show that all levels of government in Australia collected over $100 billion in taxes during the 3 months leading in to June 2017.
This represented an increase of over 4 per cent over $100 billion in taxes collected during the March 2016 quarter. This show that on average governments throughout Australia are now collecting around $1.3 billion in taxes every day.
With the new financial year under way, these taxation figures underline the importance of all Australians claiming their legitimate tax allowances to help reduce their taxable income. To take advantage of tax depreciation from investing in property. For example, an accurate tax depreciation report for an investment property can generate thousands of dollars in potential tax savings each year. Tax depreciation benefits can add up to 60 per cent of the property price of a property.
Already during the first months of the 2017 financial year, many investors have decided to buy investment properties to coincide with the start of the new fiscal year. If you buy an investment property, it is important to conduct a tax depreciation schedule as soon as possible after settlement. By claiming their full depreciation allowances, clients can achieve thousands of dollars in benefits each year from their investment.
To ensure the depreciation report is fully compliant with ATO rulings, investors should select a company that is a member of the Australian Institute of Quantity Surveyors. For more information and useful links visit the Blue Moon Property resources link. For expert advice on all of your real estate investments contact our Nambour real estate agents on the Sunshine Coast.