Changes in Legislation
Until recent changes to the Income Tax Assessment Act 1936 (ITAA
1936), property investors generally had up to 4 years within which
they could amend a tax return for a particular income year. Property
investors may find that when an inadequate Capital Allowance & Tax
Depreciation report is reviewed and updated by a qualified quantity
surveyor, they may need to amend a return for a prior year.
However, based on recent changes to the ITAA 1936, property
investors now generally have only 2 years within which they can
amend a tax return. This change affects tax returns for the 2004-05
or a later income year.
This highlights the need for property investors to consider the
following key points:
• If in doubt over a previous tax depreciation claim investors should
consult a quantity surveyor promptly, to assess the benefit in
amending prior year claims.
• When instructing a quantity surveyor to complete a Capital
Allowance & Tax Depreciation report investors should ensure that the
report is going to be accurate in the first instance, removing the
requirement to have to amend prior year claims or indeed miss out on
legitimate deductions.
BMT & ASSOC is able to assess a report prepared for an investor’s tax
return. Similarly when BMT & ASSOC is instructed to complete a report
for an investor they can be confident that all legitimate deductions will
be reported: per financial year, for 40 financial years or for the lifetime
of the investment property.
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