Get a depreciation schedule!

All types of income producing properties have substantial taxation benefits, over and above negative gearing, that an investor is entitled to claim as a tax credit. Any property, which is either rented or used for income producing purposes, is eligible to be depreciated.

This is an important aspect of the costing for an investment property and should never be overlooked according to Kathy Rogers from FinancialPlus who has shared below some information from the Aviate Group.

What this table shows is that particular property types, as a result of the nature of their build, achieve a higher rate of depreciation than other types as you can see from looking at how a 2 bedroom (BR) apartment is more maximized than a townhouse or house.

This is something that we have already talked about in a previous post which you can read by clicking here

To maximise the tax benefit a particular property, you will require the services of a recognised property tax depreciation expert (otherwise known as a Quantity Surveyor) with specific construction costing skills and experience.

This will allow you to capture the depreciation on the plant and equipment within the property, the capital works including common areas (if applicable) and any renovations and improvements carried out to the property.

• Link to Australian Tax Office Rental Guide
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• Gold Coast Property Investment Seminar Reminder
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• New or old investment properties
• Tax considerations
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