Depreciation : 4 Myths Keeping You From
Maximising Your Secret Tax Advantage

Capture The Benefits

Capture The Benefits

Depreciation is probably the most under-used weapon to legitimately shelter a significant portion of your property income.

And as a Commercial Investor, you really do have an unfair advantage over somebody investing in only residential property.

Therefore, let’s now set about dispelling a few of the common Myths concerning Depreciation.

Myth #1: The property must be New

With every Commercial property you buy, you are able to claim certain depreciation benefits, despite its apparent age.

It simply comes down to how you structure the purchase contract, as to exactly how much you are entitled to “up-value the Plant and Articles” component of the property.

Myth #2: You cannot adjust earlier Tax Returns

If you haven’t fully claimed your entitlement over the past 4 financial years … then, you can generally seek an amendment — in your favour.

Myth #3: Your Accountant calculates your Claim

No, it’s your accountant who will lodge your claim.

However, you need to engage a Quantity Surveyor to prepare the Depreciation Tax Schedule, which details everything your Accountant can claim on your behalf.

Myth #4: The Tax Schedule must be prepared ASAP

The Surveyor will apportion your claim back to the date of purchase — so the actual preparing of the Tax Schedule, is not all that time-critical.

However, the Surveyor’s fee is 100% deductible. And so, if you pay it before 30 June … you can claim it in this financial year.

As you can see, properly claiming Depreciation can offer you many benefits.

Therefore, just let me know if you need any help in arranging a detailed Tax Schedule for any properties you have acquired in the past 4 years.

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