Are you maximising the tax depreciation and capital allowance available?
All types of income producing properties have substantial taxation benefits available to be claimed as a tax credit. Many property investors are missing out on literally thousands of dollars in lost tax depreciation deductions. Both new and old properties will attract some depreciation benefit that the owner is able to claim as a tax credit. A common myth is that older properties will attract no claim. Therefore, it is worth making an enquiry about any property. When a property owner has not been claiming deductions for tax depreciation, previous financial year’s tax returns can be amended. The Australian Taxation Office (ATO) allows for up to the previous four year returns to be amended, in some instances the ATO may have to pay you money back! The depreciation benefit available depends greatly on the type of building, its age, use and fit out. Based on the Diminishing Value method of depreciation, the following scenarios are provided as an appropriate guide (refer to table below) The
