What Is Depreciation?
As a building ages, its structure and removable assets undergo general wear and tear. That wear and tear results in the building declining in value. The decline in value is known as depreciation.
Just like interest on an investment loan is tax deductible, depreciation is also another tax deduction available to investors too! Property investors can claim depreciation as a tax deduction resulting in increased tax refunds! And if you, as a Mortgage Broker, can maximise your client’s investment return, they’ll be one step closer to purchasing their next property!
Mortgage Brokers Can Help Investors Save Money on Their Investment Property
Investors need to get their hands on a depreciation schedule to claim a tax deduction for depreciation.
Tax depreciation schedules help investors:
- Increase their investment cash returns.
- Reduce their taxes.
- Increase their cash flow.
When it comes to property investment, a quality tax depreciation schedule is the key. It doesn’t just save your clients money on your year-to-year expenses; it spares more cash into their pockets every financial year.
How Does a Duo Tax Depreciation Schedule Improve Investment Cash Flow?
Martha purchased a one-bedroom investment property for $425,000.
She rented out the property immediately, and her Mortgage Broker referred her to Duo Tax to prepare a depreciation report.
Based on our depreciation report, Martha can claim a deduction of:
- $4,625 in capital works deductions (over 40 years)
- $3,825 on the new fixtures and fittings she installed (over their effective life)
That’s a deduction of $8,450 in the first year to boost Martha’s tax refund without her needing to pay any money.
Plus, Martha can claim the cost of her Duo Tax depreciation schedule as a tax deduction!
You can access tools such as our depreciation calculator to help estimate what your client could potentially claim before purchasing a depreciation schedule.
Why Choose Duo Tax Depreciation Schedules?
We’re property investors for property investors.
We’ve assembled a team of tax depreciation experts to maximise tax-deductible claims on your client’s investment property.
We offer expertise by assessing tax depreciation for investment properties that are new, old, renovated, completely refurbished or for commercial fit-outs and producing ATO-compliant reports.
We have the knowledge to provide your clients with maximum tax deductions, and we have an abundance of resources that you can use to help guide your clients in expanding their property portfolios.
With our depreciation knowledge, your clients can save more money in taxes and protect themselves against audits by lodging an ATO-compliant schedule for the depreciation of their investment properties during tax return season.