Unlocking the Power of Depreciation: 4 Common Myths Holding You Back 

WHEN IT COMES TO MAXIMISING your property’s income, depreciation is a powerful tool that is often overlooked.

As a Commercial Investor, you have a unique advantage over those investing solely in residential properties.

Let’s debunk some of the misconceptions surrounding depreciation – to help you take full advantage of this tax benefit.

Myth #1: New Properties Only

Contrary to popular belief, you can claim depreciation benefits on any commercial property you purchase, regardless of its age.

The key lies in how you structure the purchase contract to maximise the “Plant and Articles” component.

Myth #2: Past Tax Returns Cannot Be Adjusted

If you haven’t fully claimed your depreciation entitlement in previous financial years, you can typically seek an amendment to your tax returns to benefit from additional deductions.

Myth #3: Your Accountant Handles Everything

While your accountant will file your claim, you need to engage a Quantity Surveyor to prepare a detailed Depreciation Tax Schedule outlining all claimable items. This schedule will ensure you are maximising your deductions.

Myth #4: Immediate Tax Schedule Preparation

While it’s important to have a Tax Schedule prepared, the process is not time-sensitive. The Surveyor can backdate your claim to the purchase date, allowing you to claim deductions accumulated over time.

Additionally, the Surveyor’s fee is fully tax-deductible – if paid before the end of the financial year.

Bottom Line: If you require help in organizing a comprehensive Tax Schedule for any properties you’ve acquired in the past four years, please don’t hesitate to reach out.

Properly claiming depreciation can offer you significant financial benefits, and we’re here to help you make the most of this tax advantage.

Best wishes …