Issue 36 2014

Most investors are under-claiming by $4,182

Maximise deductions with depreciation

According to a recent release by the Australian Taxation Office (ATO), 2.5 million property investors claimed deductions relating to their rental property in the 2011-2012 income year.

Of these investors, just over 1 million received an average capital works deduction of $2,029 while just over 1.7 million investors claimed an average deduction of $1,139 for plant and equipment, making the total average depreciation claim made by property investors in the 2011-2012 income year $3,168.

In comparison, data collected from thousands of BMT Tax Depreciation Schedules suggests the average claim should be around $10,100 in the first full financial year and $7,350 per year on average over the first ten years of owning a property.

If you’re unsure about whether you are claiming the maximum depreciation deductions available to you, contact BMT Tax Depreciation on 1300 728 726 for a free assessment of your likely deductions.

Visit our blog BMT Insider to read the full press release