Depreciation
How is your investment property performing?
The investment property bubble may not have burst as catastrophically as predicted, but in some areas it's looking a tad deflated. Of course, smart investors aren't really affected. They understand how to maximize their cash flow by claiming every possible deduction. Smart investors claim Depreciation. And they claim it even when they haven't got tenants!
So what is depreciation? It's just compensation for "wear and tear". If you use an asset for producing income, you can depreciate it. Tradesmen depreciate their tools. Couriers depreciate their vans. Property investors depreciate their properties. Simple. As a property investor, just think of depreciation as another outgoing. It's treated no differently than interest payments, council rates, water rates, management fees etc. In many cases, depreciation can be a huge outgoing. But 80% of investors don't claim it!
Practically every property can be depreciated. New ones, old ones. Did you know some renovations can be depreciated? Even if you didn't pay for them!
To claim depreciation, all you need is a Tax Depreciation Schedule put together by a Quantity Surveyor. And we have found a group that services the entire country. Their reports are ATO compliant and their service very efficient. They even guarantee that if they can't get you more depreciation than their fee in the first full year, your Schedule will be free.
Talk to us and we will put you in touch with them - it costs nothing to have a chat to them about your investment property. Click here to find out more! OR To book a Tax Depreciation Schedule today.