On your first glance of an investment property this long weekend, all you might think about is the places the Easter Bunny could hide chocolate eggs where the kids won’t be able to find them.
As specialist Quantity Surveyors, some of these same hiding spaces contain much more.
When we look around investment properties during our site inspections, our eyes are peeled for treasures that can maximise an investors claims and put more money in their pocket during tax time.
Quantity Surveyors look for two specific categories of items the Australian Taxation Office (ATO) allows investors to claim depreciation deductions for:
- Structural works (capital works deductions) that may have been completed during the original construction of the property and any new additions or renovations that have been added
- Easily removable fixtures and fittings (plant and equipment depreciation) both inside and outside the property
To help explain what we’re looking for, we wanted to present you with an Easter egg hunt showing the depreciable items that can be found in the yard of one investment property below.
As the image shows, even the most unexpected items in a property can provide depreciation deductions for the owner of an income producing property when they complete their tax return.
Who of you would have thought that the swing set and the sand box would allow you to claim depreciation?
It goes to show why it is so important to ask one of our expert staff to come out and perform a site inspection and prepare a depreciation schedule outlining the maximum possible deductions for you.
Of course, the $1,575 in first year deductions outlined within our hunt is only a very small portion of the deductions we’ll find you. We will also find depreciation deductions in the original building structure of any property constructed after the 15th of September 1987 and for any renovations or additions which have been completed within the legislated dates (even if these were completed by a previous owner).
Plant and equipment assets such as stoves, ovens, hot water systems, carpets, range hoods, door closers, garbage bins and air conditioners will also add up to significant depreciation claims for an investor.
So hop to it. Contact one of our expert staff and request a depreciation schedule. You might just find yourself jumping for joy when you visit your Accountant at the end of financial year.