Improve your Tax Deductions

According to the ATO 52% of property investors don’t claim all of their available deductions. Property investors are often surprised by the amount of items they are able to claim depreciation on inside and outside of their investment property. Just like you claim wear and tear on a car purchased for income producing purposes, you can also claim the tax depreciation of your investment property against your taxable income.

You could have thousands of dollars in depreciation deductions waiting to be claimed. There are two types of allowances available: depreciation of plant and equipment and building allowance.

Plant and equipment refers to items within the building like ovens, dishwashers, carpet, light fittings, blinds, etc. Building allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income.

If you are unsure about the deductions you could be entitled to, you may like to visit the ATO wesite; www.ato.gov.au or contact a tax depreciation specialist.