As property investors, there are a myriad of documents required at the end of the financial year to maximise your cash flow from a tax perspective. Depreciation is the second largest property expense after interest charged by lenders and can translate to a substantial gearing advantage for the life of the property. Thus, it is crucial to prepare your documents ready for lodgement and have a Quantity Surveyor prepare a depreciation schedule on your behalf if not produced at present moment.
Below are some types of documents which are often overlooked resulting in unclaimed expenses.
- Insurance statements
- Owners corporation/ Strata body statements
- Depreciation schedule
- EOFY statements from real estate agent
Enquiries submitted to Duo Tax before the 30th of June 2020 can receive a tax-deductible invoice claimable for the current financial year. Investors can expect to receive further cash flow advantages when the cost of the report is claimed alongside with their personalised depreciation schedule.
We understand that every dollar saved counts and will continue to deliver value to clients both existing and new. Duo Tax also offers complimentary report revisions limited to $10,000 in total expenditure. This means that if renovations have been conducted or if new equipment has been supplied to the tenant since receiving a depreciation schedule, your report will be able to be revised to capture the additional depreciation available.
Duo Tax have the ability to evaluate all types of properties, whether it’s a service station, bungalow, health club or duplex. If your property is suitable for occupancy, depreciation may be claimed and it is strongly recommended to ask a Quantity Surveyor “This is my property address, what deductions am I entitled to?”.
Furthermore, if you have held an investment property for a prolonged period and have not claimed depreciation, the Australian Taxation Office allows 2 years to amend tax returns from when you received the notice of assessment for that particular income year. A depreciation schedule can then be produced to start at the earliest date possible which may result in compounded cash returns.
Example: Jane purchases a rental property in 24th July 2017. She rents it out immediately upon settlement and lodges her tax return for the 2017-18 year (the year in which she purchased the rental property) but does not claim any depreciation. Her notice of assessment date is 3rd of August 2018. In July 2020, a friend of her recommends her to get a tax depreciation schedule. She is eligible to claim depreciation 2 years from the 3rd of August 2018. That means the cut-off to claim depreciation for the 2016-17 year is the 2nd of August 2020 in Jane’s case.
If there is anything we’ve briefed over which may be of interest, please call our office on 1300 185 498 for a complementary consultation where our experienced staff are trained in assisting with property-tax queries.
Wishing our clients, readers and partners the safety and well-being during this unprecedented time as the team at Duo Tax continue to serve as a medium to inform and share knowledge on maximising property cash flow. If there is information that we have briefed over which may be of interest, please call our office on 1300 185 498 or email firstname.lastname@example.org and our expert staff will be pleased to discuss in further detail.
Tuan Duong is an award winning Quantity Surveyor and leads Duo Tax Quantity Surveyors – Australia’s fastest growing provider of Tax Depreciation. Reach out to him directly on 0431 154 356 or email email@example.com