Don’t postpone getting a depreciation schedule
Partial year deductions still benefit investors
Often when an investment property is purchased towards the end of financial year the new owner will postpone getting depreciation schedule prepared until next year. However, there are ways in which partial year deductions can be maximised, resulting in extra cash for the owner.
A specialist Quantity Surveyor will use legislative tools to make partial year claims more beneficial to new investment property owners. Here are just a couple of the methods used:
An immediate write-off can be applied to any item within an investment property which cost less than $300, regardless of how long the property has been owned and rented.
This is a method whereby depreciation of plant and equipment assets is claimed at a higher rate to maximise deductions. Low-cost assets valued less than $1,000 can be placed in a low-value pool where they can be claimed at a rate of 18.75 per cent in the year of purchase and 37.5 per cent for each year afterwards, regardless of how long the property has been owned and rented.
For an article which provides a full case study on partial year deductions, investors can click here.
The fee to arrange a tax depreciation schedule is 100 per cent tax deductible and if an investor orders a schedule prior to June 30 they can claim the fee straight back in the same financial year.
Investors who would like a free over the phone assessment of the available deductions for their investment property should speak to one of the expert staff at BMT Tax Depreciation on
1300 728 726.