Properties that generate income for the owner are eligible for significant taxation benefits.
Of all the tax deductions available to property investors, depreciation is most often missed because it is a non-cash deduction - the investor does not need to spend money to claim it.
"Research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in their pockets," said Bradley Beer, Managing Director of BMT Tax Depreciation.
As a building gets older, items wear out - they depreciate. The Australian Taxation Office (ATO) allows property owners to claim this depreciation as a deduction.
Claiming depreciation on an investment property can make a big difference to an investor's cash-flow.
In order to claim these deductions, investors are encouraged to enlist a specialist Quantity Surveyor to complete a tax depreciation schedule. This schedule outlines the deductions available on specific property and is used by the investor's Accountant when preparing a tax return.
For one investor who had a tax bill from the previous year, the results were significant.
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