What’s depreciation? In a nutshell, it’s an allowance under tax laws in Australia for investors. It means they can claim deductions for expenditures in their property investments.
Why depreciation? Even extremely well-built houses aren’t immune to wear and tear over the years. Thus the ATO allows investors to use tax deductions as they relate to ageing. Typically these concern the amount that the items and the building have declined and add up to thousands.
Can I do this by myself? Of course, but it’s wiser to ask the experts. Jim’s Building Inspections can provide a professional with industry experience. They are able to do thorough inspections and paperwork. The result: a quality depreciation schedule with all of the investor’s claimable items etc.
Note: ‘Until the 2017 budget, investors were allowed to claim depreciation on both new and used assets.’ Not now. More details here.
Image Source: https://www.domain.com.au/advice/why-the-depreciation-shakeup-gives-offtheplan-investors-an-edge-at-tax-time-20180726-h135jb-754778/