Common deductions property investors miss
Garden watering systems, closed circuit television systems, intercom systems and solar powered generating system assets are all assets which are often missed by property investors when claiming depreciation.
These and other missed assets are part of a list we have compiled below to help investors avoid missed depreciation deductions.
Although many of these items have a low depreciable value, they can add up to thousands of dollars for an investor.
So here’s our system to help investors ensure no item is missed and to maximise their depreciation deductions:
- Take note of the assets included in the above table
- If you have a depreciation schedule and you own any of these assets, confirm with your accountant that they are included in your schedule and your depreciation claim. If items have been missed, the Australian Tax Office will allow you to go back and amend the previous two years of missed deductions
- If you don’t have a depreciation schedule you should talk to a specialist Quantity Surveyor as soon as possible
- Ensure your specialist Quantity Surveyor can outline the deductions available for assets which are eligible* to be written off immediately or added to the low value pool. A specialist Quantity Surveyor will use their expert knowledge of tax legislation to ensure the maximum deductions are claimed for each individual asset.
*Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on plant and equipment assets. Investors who purchased prior to this date and those who purchase a brand new property will still be able to claim depreciation as they were previously. BMT Tax Depreciation will be making an official submission outlining our concerns along with suggestions of alternative methods to better resolve the Government’s integrity issue. To learn more visit www.bmtqs.com.au/budget-2017.
