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Investors are often surprised by the amount of items they are able to claim depreciation on inside and outside of their investment property. The following outlines the plant and equipment deductions available room by room in a residential property and a single level office. It also provides examples of the assets that can be claimed. Each scenario provides an average of the total depreciation claim per room.
Depreciation: Room by Room
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Bedroom
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Carpet, Blinds
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Air conditioning, Ceiling fan
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Gas heating systems
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Smoke alarm
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Depreciation claim
for
bedroom
$6,000
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Bathroom
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Blinds
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Heat, light and exhaust units
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Bathroom accessories - freestanding
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Depreciation claim
for
bathroom
$4,000
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Family Room
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Floating timber floor, Blinds
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Lighting, Air conditioning, Ceiling fan
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Gas heating systems
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Smoke alarms
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Depreciation claim
for
family room
$10,500
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Kitchen
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Floor coverings, Blinds
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Cook top, Oven, Rangehood
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Microwave, Dishwasher
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Lighting, Exhaust fans, Air conditioning, Ceiling fan
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Depreciation claim
for
kitchen
$7,500
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Outdoor areas
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Automatic garage door – motors/controls
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Garbage bins, Hot water systems, Pool/spa pumps
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Pool cleaner, Garden watering installations
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Outdoor furniture (including table and chairs)
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Outdoor gas heaters, BBQ
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Depreciation claim
for
outdoor area
$13,000
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Single Level Office
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Carpet, Lift, Fluorescent lighting, Fire alarms
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Air conditioning, Door Closers, Fire exit sign
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Fire hose reel, Instant hot water unit
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Bathroom accessories, Blinds, Hand dryers
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Partitioning, Security system, Signage
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Depreciation claim
for
office
$32,000
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BMT figures based on the diminishing value method of depreciation.
It is vital to get a depreciation specialist, like BMT Tax Depreciation, to prepare a tax depreciation report. Maximising the plant and equipment items within an investment property can generate thousands of dollars at tax time.
A BMT Tax Depreciation specialist will visit the investment property to identify and photograph all plant and equipment assets (Division 40) ensuring that the deductions are accurate and every asset is included. They will take detailed measurements, noting the construction method used, to accurately determine the historical construction cost of the property. BMT only use our own fully trained staff for site inspections, ensuring that if you are audited by the ATO, we will stand by our report and answer any questions they may have.
While the above examples have only considered the Division 40 deductions available, it is important to remember that the building may also qualify for capital allowance deductions; depending on the year construction was completed. Consult a BMT Tax Depreciation specialist for an obligation free assessment of your investment property if you are unsure about your entitlements.
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