Claiming depreciation on your investment property this EOFY

As we approach the end of the financial year and tax time, it’s important to know the tips and processes that can help you get the most out of it. What many who own investment properties aren’t aware of is their ability to claim depreciation and potentially get thousands back in their return.

Depreciation is essentially the wear and tear over time on the property itself, as well as any of its fixtures and fittings. An apartment, for example, could have things such as taps, showers, toilets and dishwashers that have all seen wear and tear over time. Cataloging these in what’s called a ‘Depreciation Report’ will be the process by which you can claim tax deductions.

In order to create a Depreciation Report, you should look at employing the services of a Quantity Surveyor. This is someone who has extensive knowledge of all forms of depreciation in properties and will know what to look for when making claims. They’ll note the age and materials of the building and its fittings, and record aspects of their depreciation accordingly and in line with tax office rules.

This report can then be used by your accountant to claim tax deductions, potentially giving you back thousands of dollars. Here are two providers of Depreciation Reports that we recommend:

Washington Brown - https://www.washingtonbrown.com.au/depreciation/

Duotax - https://duotax.com.au/