Why Property Depreciation Is Important and How to Claim It

Every year several Australian property investors lose out crucial tax depreciation benefits worth thousands of dollars. Actually, they fail to claim the valid property tax depreciations. Not claiming the property depreciations is like not charging rent to your tenants.

One of the major reasons why property investors don't have a tax depreciation report is simply because their accountant never asked them to get one. Maybe because even the accountant is unaware about it.

Property depreciation is a form of income that property investors can make from tax depreciation deductions. The Australian Taxation Office (ATO) allows investment or rental property owners to depreciate the value of their properties and claim the amounts as tax deductions against the income tax that they have to pay on the profit. Generally maximum property depreciation deductions can be achieved on new properties, although old properties are also eligible for significant tax depreciation benefits. But, the depreciations are incurred more on newer properties.

Therefore, when investing in property, you must prioritize on purchasing brand new properties which offer high levels of depreciation. And, we can utilize the property depreciation benefits to sustain the investment property while it grows older. As authorised by the ATO, depreciation schedules can only be obtained from registered quantity surveyors in Australia, while your accountant can be consulted for tax deductibility of the items included in the tax depreciation report.

Hence, it's recommended to all property investors to at least inquire whether or not their property is eligible for property depreciation deductions on their property!!