As we approach the end of financial year for 2018, Duo Tax Quantity Surveyors look back to see the impact and reach of legislation. In summary, most investors we come across have no idea about the changes. The change can result in a loss of up to $50,000 worth of tax deductions if not understanding their eligibility criteria. Making it more critical than ever to have the QS determine feasibility of depreciation on any rental property.
Well before the recent legislation changes to depreciation on rental properties, most would already question the feasibility of obtaining depreciation. The problem is only worse with the evermore stringent rulings. The legislation effectively will disallow property investors from claiming depreciation if you purchase or exchange contract after the Budget night. The Federal Budget night took place at 7:30pm on the 9th of May 2017 and outlines proposals to amend legislation.
It's worthwhile noting that legislation changes only affect Plant and Equipment or Fixtures and Fittings. This is Division 40 of the Income Tax Assessment Act and has no bearing on claims of Capital Works or Building Allowance depreciation.
Now with the recent changes it becomes even more difficult to adequately ascertain if a depreciation schedule is a viable option for you.
To give you a quick rundown of the legislation changes, we have list below the key changes to identify ineligibility:
The above cases are difficult to identify if you do not have the right research and real-estate tools to identify. That is why Duo Tax Quantity Surveyors can provide free consultation to give you hard facts about your property's build date, purchase date and even look up renovations. Relying on these facts along with online database photos of your property, we can provide guaranteed deductions prior to commencing any work. This gives every client of ours tax-deduction guarantees before the job starts. Resulting in 100% customer satisfaction each and every time.
There is much complexity that revolves around tax depreciation and these new changes. The soundest advice we can offer all property investors is to ask a Quantity Surveyor the question:
"This is my investment property's address and what is my entitlement as a tax payer?"