Frequently Asked Questions
The ability to maximise an investor’s tax deduction depends solely on the quantity surveyors’ library of project experience. It is the lengths we go to in order to identify what is between a property’s walls and floors that maximises the tax deduction.
We find that once clients are well-informed with the tax saving potential with a depreciation schedule, the cost of a report quickly becomes insignificant and rather inexpensive!
Taller buildings attract higher depreciation. The truth behind it.
Construction costs of a house is generally lower than a high rise apartment and typical items found in apartments such as lifts and fire services can add a great deal of costs which in turn provides higher tax deductions.
If you are buying a first home and aim to reap the government incentives and benefits, don’t make the mistake of many and think you aren’t entitled. If at any stage you decide to switch the asset from a home to an investment property, as soon as it is put on the market for rent you are entitled to start claiming the deductions.
The ATO allows you to claim building depreciation on all residential investment properties built after July 1985. And if it is built prior to this date, we urge you to get an inspection as we typically find a lot of fixtures and fittings that fall under the plant and equipment category with plenty of life still left in them. A usual one that is not often picked up is renovations to parts of a home that aren’t that obvious. We offer free consultation and also our guarantee applies here to help those that are not sure if they are getting value out of a report for their property.
In these properties, unlike a house, if you purchase and own the space to run your own business, the ATO will allow you to claim the depreciation on these as a deduction. If you lease out a space and have completed a fit-out to operate your business, enquire with us to ensure you get the deductions. Speak to your accountant to get proper advice suitable for you.
If you are an overseas investor and looking at acquiring an investment property for the purpose of letting it out to tenants, by law you must lodge an Australian tax return. As such, a depreciation schedule will work favourably for you. Speak to an accountant for clarification on your tax obligations.
Before you demolish and destroy any existing plant and equipment or structural elements of the property such as an old kitchen and appliances, check with us to see if there is any residual value worth writing off as a loss. Most often we find lots of deductions that can be claimed IMMEDIATELY that financial year.
For example an old kitchen with a residual value of $4,500 may still have another 3 years’ worth of depreciation but due to the demolition to reinstate a new kitchen, $4,500 is claimable in full in the current financial year. Speak to your accountant to ensure the circumstance is suitable for you and engage a quantity surveyor to depreciate it.
We can help. We have qualified construction professionals undertaking inspections all over Sydney, Wollongong, Central Coast, Adelaide, Brisbane, Canberra & Melbourne.