03 Jun TA:08 It’s tax time – here’s some great tips?
When it comes to sorting out the tax issues for investment property we are all pretty good and capturing the main components, That is the income of rent less all the costs like rates, insurance, owners corp fees, agents service fees, and interest on the loan. But there are non cash items that are also deductible from your taxable income which can keep dollars in your pocket which is a whole lot better than paying it to the ATO.
Here are three quick trigger questions to decided if you should get a depreciation schedule prepared.
The main one is depreciation which is the notional allowance for the deterioration in monetary value of the buildings and all the associated fixtures, fittings, plant and equipment. Their are rules about how much money you can claim for each component of the property and a quantity surveyor can work out exactly how much you can reduce from your tax bill. They prepare for you a depreciation schedule which tells you (actually your accountant) how much you can claim each year for many years to come. So you really only need to get it done once and then unless you do a major reno you are all set.
Mike Mortlock is the Managing Director of MCG Quality Surveyors. Mike and his team know all the little nooks and crannys where deductions hide and specialise in preparing depreciation schedules for investment apartments. It is tax time so I was very grateful for Mike’s time during the busiest time of the year for him.
Contact Mike and his team directly