Thanks for your comment.

We are experiencing some delays due to lockdown restrictions, but please rest assured as soon as restrictions are lifted and its safe to do so we will be prioritising delayed jobs.

In terms of tax, a BMT Tax Depreciation Schedule allows you to amend previous tax returns. This means even if you don’t get your schedule in time for this year’s tax return, you will still be able to claim depreciation for the 2020/21 financial year by lodging an amendment.

However, stamp duty isn’t tax deductible as it forms part of the property’s cost base.

Thanks,
The BMT Team

One more question, is stamp duty on investment claimable in tax?

Thank you
Tej

Thanks for your comment.

We will need to look at several factors to determine whether you can claim depreciation for the month the property was on the rental market.

For example, if the property was classed as genuinely available for rent as per the ATO’s standards then depreciation may be available. However, not actually receiving income from the property may also impact this. You can find more information on the ATO’s standards here https://www.ato.gov.au/Individuals/Investments-and-assets/Residential-rental-properties/Rental-property-genuinely-available-for-rent/

You also need to consider the impact the small amount of deductions could have on your future CGT implications. We recommend to seek further advice from an accountant.

Thanks,
The BMT Team

I built a new property and put it on the market for rent. However, after a month I decided to move in instead.

Am I able to claim any depreciation deduction for the property during the time it was on the rental market?

Thanks

Thanks for your comment.

If you have an investment property, you will be able to claim the tax-deductible expenses against your annual taxable income.

For example, if someone had an annual taxable income of $100,000 and claimed $20,000 in investment property tax deductions, their tax liability will be based off $80,000 instead of $100,000 resulting in less tax to pay.

Thanks,
The BMT Team

Thanks for your comment.

You can claim tax deductible expenses as soon as the property is ‘genuinely available for rent’. This means you can claim expenses like interest repayments and depreciation while you search for tenants for the property.

Thanks,
The BMT Team

Great article.

I am about to purchase vacant land and plan to build property on it. I just need to understand if building/buying it as investment is best for me (tax wise).

I pay a lot of income tax (~$70k p.a), and I wanted to know if I can directly claim investment property expenses against that taxable income. Hypothetically, if I had $10k in Depreciation/Expenses- would I that reduce my payable tax to $60k?

Thanks

Thanks for your comment.

Given that you have already lived in the property, you won’t be able to claim depreciation on the existing plant and equipment assets.

However, you will be able to claim capital works which on average make up 85 to 90 per cent of total depreciation claims. This is in addition to any new plant and equipment assets you purchase for the property once it’s an investment.

Thanks,
The BMT Team.

I purchased a new apartment in January (from the developer, I am the first owner) and lived it in for 6 months (from January until now). I am renting it out now. Can I still claim depreciation on the existing plant and equipment assets (e.g. carpets, lights, hot water systems) or just for the capital works?

Thanks!