Did you know that capital allowance and depreciation are some of the biggest tax deductions claimed by owners of rental properties?
If you have invested in a rental property or properties, we know that you’ll want to maximise their value and the returns that they can make for you.
Tax depreciation and Capital allowance laws benefit property investors by maximising returns on property investment. They actually constitute some of the largest tax deductions available. Each year, thousands of property investors essentially pay far more tax than they need to, because they fail to claim a deduction for the depreciable aspects of their investment property. If you’re not familiar with how depreciation benefits you as a property investor, watch this video from Capital Claims Tax Depreciation. This will help you to learn more about what depreciation is, and how it can benefit you as an investor.
Most people know that property values increase over time. However, what many new investors don’t realise, is that while the value of a property appreciates, certain items in the household such as fixtures, are depreciating. The ATO views the wear and tear of these things to be a tax deduction. The expenses associated with the decreasing value of certain items, as well as repair expenses, are all considered taxable deductions.
To learn more about the tax benefits available to property investors, or to discuss other financial aspects of property investment, please feel free to phone the expert team at Acumon Accountants and Business Advisors on 4931 1100.