Tax Time - get your property depreciation entitlements

Are you maximising the tax depreciation deductions you’re entitled to on your investment property? More than 80 per cent of Australian property investors do not claim all the tax deductions to which they are entitled.

All types of income-producing properties offer substantial taxation benefits that can be claimed in the form of a tax credit. Many property investors are missing out on claiming thousands of dollars of tax deductions in depreciation.

Both new and old properties attract some depreciation benefit that the owner is able to claim as a tax credit. It is a common myth that older properties attract no claim. It is worth making an enquiry about any property.

If a property owner has not previously claimed deductions for tax depreciation, the Australian Taxation Office (ATO) allows for up to two previous annual returns to be amended. In some instances the ATO may pay you money back!

The depreciation benefits available depend significantly on the type of building, its age, use and fitout. Based on the Diminishing Value method of depreciation, the following scenarios are provided as a guide for properties less than five years old.

Information Provided by BMT Tax Depreciation

(1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service)