A wide range of property investors fails to comprehend the large amounts of money they are entitled to claim back from the taxman, by considering depreciation of household goods, as well as building prices.
Research conducted by experts in the domain indicates that, from the existing two million Australian investors, four out of five of them fail to take advantage of the benefits that come with annual depreciation deductions.
Given the great variety of potential deductions, it is important to acknowledge which one is most profitable for property investors. According to BMT Tax Depreciation CEO Bradley Beer, there are three aspects that should be taken into consideration – solar power systems, air conditioners, and floating timber floors. He claims that during one year of financial activity, property investors can obtain about $3400.
Important sums of money can be required through other deductions as well. BMT outlines that property investors should keep count of common factors such as water systems and bathroom accessories. Other sums can be obtained by the deduction of other items including smoke alarms, garbage bins and exhaust fans.
Bradley Beer affirms that if a single asset that is not part of a set (for instance, table and chairs), is worth less than $300, then the property investors are entitled to obtaining the deduction for that item.
Information property investors should take into consideration
When it comes to obtaining depreciation schedules, a regular one costs about $700. Experts recommend opting for a company that is reliable and provides excellent service, sending a quantity surveyor to the property, compared to cheap depreciations carried out online.
For property investors who haven’t done the depreciation correctly in the past, the procedure for claiming deductions from the past is a positive alternative. Beer says that the process is quite effortless.
Prue Muirhead, property manager, affirms that the majority of property investors comprehend that they can depreciate items such as curtains, carpets and lights, but they fail to understand that they can obtain significantly higher sums of money from the annual 2.5 percent write down involving the building costs of a property.
Concerning the building costs of property, for instance, for a structure priced at $200.000, the depreciation costs can be $5000 a year, without taking into account the deduction including fixtures and fittings.
It seems that numerous depreciation companies ensure their customers that they will obtain a considerable sum, increasingly higher than the one they charge. The bottom line is that every property investor should take this procedure into account. They don’t know what they’re missing out.