Tax Advantages Offered By the Rental Property Business

Rental property business is a growing sector!

People are realize that this is a great way to earn!!

Also, there are various favorable tax advantages that investors can benefit from!!!

As you might already know, a rental property is considered as an investment property and not a residential estate. Thus, the tax computation is also different. So, how does the property owner benefit from it?

You can offset your rental income by claiming the property depreciation of your investment property, and the appliances as well as mechanical systems it contains, because they age. This tax depreciation is not taken all at once, but calculated over time.

Since having a rental property is a business, the income generated from it will be treated as your gross income. Therefore, the expenses incurred, related to running the business shall be deducted. There are several expenses that can be deducted from the gross income, among those are cleaning and maintenance, the interest on mortgage, insurance, advertising for tenants and property depreciation.

Property depreciation is one of the most common tax advantages that you can benefit from. This is taken from the gross annual income, thus providing significant savings for the rental property owner.

Well, it’s not viable for everyone to prepare a tax depreciation report or depreciation schedules, because it requires proper knowledge and years of experience. Therefore, the Australian Tax Office (ATO) has authorised only certified and experienced Quantity Surveyors for preparing tax depreciation reports or depreciation schedules for both rental and investment properties.

So, if you own a rental or investment property in Australia, and are looking for a reputed Quantity Surveyor or Quantity Surveying firm that can prepare perfect depreciation schedules for you, look no further than Property Returns!!!