Legitimate property deductions, how not to miss out

It sounds strange but we buy investment property because it is an appreciating asset, right? However, there is a legitimate way to skyrocket the property deductions on your investment property by claiming depreciation on it!

The Australian Tax Office allows investors to claim depreciation on the cost of the building and the wear and tear on fixtures and fittings in an investment property as tax deductions.

So how do you take advantage of this?

To claim depreciation on an investment property you need to obtain a Quantity Surveyor’s (QS) Report, also known as a Capital Allowance & Tax Depreciation Report. These are prepared by a specialist quantity surveyor who will provide a breakdown of the depreciation figure that can be claimed as a deduction each year in your tax return.

Check out this video where leading Quantity Surveyor Brad Beer from BMT Quantity Surveyors explains the benefit of a QS report.

McCarthy Group commissions a QS Report from BMT for every client’s investment property that is constructed and is provided upon completion and handover of the property, to help our clients maximise their deductions.

Another benefit of the QS report is that you if have missed out on investment property depreciation claims in previous year’s tax returns, there is the ability to lodge an amended return. For more information, please consult with your tax advisor or tax agent.

 

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