The Power of Property Depreciation
As tax time is winding down, a leading tax depreciation expert urges investors to make sure they aren’t missing out on tax concessions.
A staggeringly high proportion of investors are unaware that they are able to claim property depreciation as a tax deduction and subsequently miss out on the available tax credits.
Director of BMT Tax Depreciation, Bradley Beer, points out: “Research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in their pockets.”
Many investors fall into the trap of thinking that depreciation is only relevant for brand new properties. New properties have a higher depreciation rate than older properties. It’s one of the principal reasons why many savvy investors prefer brand new properties in their portfolios. Nevertheless, whilst the benefits are greater for newer properties, it’s generally still worthwhile claiming your depreciation on older properties.
Organising a depreciation report for your investment property could be the difference between turning a negatively geared investment into a neutral or positively geared asset and possibly providing you with a positive cash flow against a property with negative cash flow.
In the latest edition of Property Insight by Which Property, eliminate the confusion surrounding this often misunderstood topic of tax depreciation and increase your understanding of how to claim your depreciation benefits — even if you haven’t claimed before.
For more information, contact Which Property
Phone +61 7 3505 6000