Rental properties: Are you claiming depreciation?

Claiming depreciation and capital works deductions on investment properties can result in a significant tax benefit to rental property owners.

If you have or are considering investing in a rental property, ensure that you obtain a quantity surveyors report which will outline depreciation and capital works deductions available for the property.

A depreciation deduction can be claimed each year based on the report which potentially could reduce your annual tax bill by thousands.

Note: Under new legislation, investors who exchange contracts on a second-hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets. Investors can claim deductions on plant and equipment assets they purchase and directly incur the expense for. Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously. 

If you would like more information about depreciation, capital works and other deductions available for your rental property, get in touch with me at marko@momentumca.com.au.