Tax Depreciation – Get More Out of Your Property Investments
Remarkably, only 20% of property investors are claiming their full depreciation entitlements allowed under Australian Taxation legislation.
What is Tax Depreciation?
Depreciation is the accounting method used for calculating the loss in value for a building and its fixtures and fittings over time. With a Tax Depreciation Schedule, you can claim that loss on rental properties as a deduction in your tax return every year until the cost of the asset is fully written off. Even though there were changes to the deductions in the Federal Budget this year, it is still worth investigating the feasibility of a Depreciation Schedule. Better the money in your pocket!
Asset Reports are charging $615 inc GST until 31 July 2017 to encourage all investment property owners to maximise their returns. Companies that also provide Depreciation Schedules are Deppro 1300 888 489 or BMTS 1300 728 726.
Does Your Accountant Need an Updated Assessment on Your Investment Properties?
Our sales team is more than happy to help – just let your Property Manager know and they can point you in the right direction.
Withholding Tax Threshold Changes
In 2016, the Federal Government introduced a foreign resident withholding tax of 10% for all property sales over $2,000,000 – if you can produce a valid clearance certificate for exemption of the withholding tax, of course you weren’t subject to the tax. From 1 July 2017 property sale contracts entered into with a sale price of $750,000 or more will now be subject to foreign resident withholding tax which has increased to 12.5% unless a valid certificate is produced. So if you are selling, please make sure your tax returns are up to date and your agent includes a withholding tax annexure to your sale contract . More information about obtaining a certificate can be found here.