Comments on: What happens if I don’t depreciate my rental property?

By: BMT Team

BMT Team — Mon, 05 Sep 2022 07:01:20 +0000

Hi John
Claiming depreciation each year can improve both the annual cash flow and overall tax outcome when investing in property. You can read more about this in our Maverick article, Depreciation and CGT.
You can back-claim up to two years’ worth of depreciation deductions from your last notice of assessment. To do so, you will need a tax depreciation schedule and to file amendments to previous year tax returns.
We recommend you get in touch with us on 1300 728 726 to discuss your depreciation situation.
Thanks,
The BMT Team

By: John S

John S — Sat, 03 Sep 2022 01:23:15 +0000

Hi
I’ve had a rental property for nearly 30 years and never claimed capital depreciation, as my accountant says it can all be claimed when I sell. Is he correct? If not and I have a schedule prepared now, how many years can I go back to claim?

Thanks

John

By: The BMT Team

The BMT Team — Mon, 09 May 2022 00:41:35 +0000

Hi Henry,

Thanks for your comment.

You can claim tax depreciation at any point if the property is eligible for depreciation deductions.

In a BMT Schedule the depreciation will begin from your settlement date, as this is the date you acquired the asset. You can amend your last two tax returns if you would like to back-claim eligible deductions in the years you have rented the property but not submitted a claim for depreciation.

If you do not wish to amend prior returns, you can choose to forfeit those years of deductions and simply start to claim the deductions that are eligible in the financial year you begin to claim. Unfortunately, you are not able to claim the deductions for prior years in one return.

If you have further questions or to organise a quote, please get in touch with one of our depreciation specialists on 1300 728 726.

Thanks,
The BMT Team

By: Henry

Henry — Mon, 18 Apr 2022 12:27:13 +0000

Hi, if I owned a property for a few years and I have never claimed depreciation. Now I decide to claim depreciation, but I don’t want to amend prior years’ income tax returns. Can I make that change from this year?