As a property investor, you could be entitled to save on tax by claiming depreciation. To claim this, you’ll need a depreciation schedule.
A tax depreciation schedule is a report with details of the depreciation entitlements available within your investment property. This allows you to enjoy significant tax savings as your property investment grows.
Here are the two types of assets you can commonly claim depreciation on.
Capital allowances are based on the historical construction cost of the property. Capital allowances can be claimed on your original residential property after the cut-off date of the 15th of September 1987 or on any subsequent qualifying renovations or improvements completed by either the previous owner or yourself.
Plant and Equipment Items
The Australian Taxation Office defines plant and equipment items as “loose assets” or control panels for automated systems. The ATO annually releases a list of these assets. Some of them include: air conditioners, blinds, carpets, hot water systems, exhaust fans and bathroom accessories.
As a property investor, you should be working with a team of specialists, including a financial advisor or accountant who you can consult on how to prepare a depreciation schedule. You should ask for a depreciation schedule when you purchase a property, complete any work or buy any assets.
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