All types of income producing properties or investment properties can have exceptional tax benefits, yet almost all of Australian property investors aren’t aware or aren’t making use of these tax depreciation benefits.
What is tax depreciation? In its simplest form, tax depreciation is the financial term given to the legitimate deduction claimed against the tax generated by your property.
The value of the original assets and costs put in to your property (these can include renovations, furniture, or fittings) will deprecate over a period of time, and tax depreciation allows for the recovery of a portion of these costs of assets.
Claiming depreciation on your investment property can help to maximize your cash flow generated by your investment property, and get the most out of property tax benefits.
Having an expert prepare your tax depreciation is vital in this step, and it pays to seek a professional Quantity Surveyor to assess and calculate all cumulative assets in both the capital works and equipment costs of your property in order to help you get the best depreciation out of your property, consult the best for tax depreciation in Adelaide. Anyone can obtain a quantity surveyors report in Sydney, Melbourne, Adelaide, Brisbane, Gold Coast, Darwin, Hobart, and Perth. It is recommended to source out a firm with at least 10 years industry experience to ensure you receive the necessary experience needed to assess your property.
Quantity surveyors will examine your property and prepare a tax depreciation report based on costs and assets invested in the property; and will take in a number of factors including the age, original cost, rates, and function of the property in order to determine the amount of depreciation. Generally a tax depreciation report is drawn and finalized based on two categories; “prime cost” and “diminishing value”. It isn’t necessary to go in to too much depth with these terms (that’s what a quantity surveyor is for!) but basically both of these factors weigh in the cost expenditures of both assets and costs put in to the property, and how much of these assets values have reduced – or deprecated – over time.
A tax depreciation report can be arranged via your nearest taxation office, or online. The documentation turnover of a tax depreciation report generally takes up to five days from the initial inspection from the quantity surveyor. The cost of the tax depreciation report will last the lifetime of the property, and is also tax deductible! Prices of a tax depreciation report for your property may vary, depending on the age of the property, its use, and location.
With tax depreciation companies and offices offered Australia-wide, it is easy to get started with, and make use of tax depreciation on your property. For property investors taking advantage of the property boom and low interest rates of the Adelaide housing market, make use of tax depreciation report in Brisbane investment properties to further maximize your investment return. For tax depreciation in Adelaide an obligation-free tax depreciation report can be accessed online to help you maximize the cash return from your property today.