Perth Property Hub


Perth Property Hub

Kristian Jeromson, QS Principal Asset Reports

The simplest and most effective way to offset increasing interest costs is to start claiming Depreciation and with the October 31 lodgment due date fast approaching, now is the time to start saving thousands with a Depreciation Schedule prepared by a qualified Quantity Surveyor.

Depreciation Schedules = More Deductions

If you’re an individual lodging your tax return for the 2021-2022 financial year it must be lodged by October 31, failing to lodge in time may bring you under scrutiny and you may have to pay a fine to the Australian Taxation Office.

Do you have a Depreciation Schedule in place for your Investment Property?

Depreciation is the accounting method used for calculating the loss in value of a building over time. You can claim this loss in value as a tax deduction in your annual tax return. Having a Depreciation Schedule in place is an essential part of any Investment Property strategy.

Doesn’t my accountant look after that?

Only a qualified Quantity Surveyor can prepare a Depreciation Schedule. An accountant can order one for you, however this may take longer and end up costing more than if you had one already prepared.

Will this just be a new fee that I have to pay year after year?

A Depreciation Schedule lasts for the life of the property (40 years). You only have to pay one initial tax-deductible fee for the schedule, and then it is yours to provide to your accountant throughout the life of your property.

Don’t miss out on thousands of dollars’ worth of deductions

It’s the second biggest tax deduction according to the ATO, with the average depreciation claim being over $8,000 per year. If owners don’t currently have a schedule in place, this is a key part of their investment they will be missing out on. A site inspection of your investment property is key to claiming maximum deductions and a Tax Depreciation Schedule prepared by a qualified Quantity Surveyor is the only way you can substantiate your claim with the ATO.

Beat the October 31 Deadline, contact Asset Reports today for a free estimate on the potential deductions available for your investment property.

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