For owners of investment properties, claiming tax deductions on items in your rental property with depreciation entitlement can help to reduce your tax payable and boost cash flow.
According to Paul Bennion, Managing Director of tax depreciation specialist DEPPRO, hundreds of household items including dishwashers, dryers and even garden gnomes can be depreciated for tax purposes.
"Many investors underestimate the number of items that can be depreciated for tax purposes. The comprehensive list even includes garden gnomes and cubby houses, and if you own an apartment, common areas such as car parking and recreational facilities may also be eligible,” Bennion said.
However, to qualify for legitimate tax deductions, an investor must have a fully compliant tax depreciation company undertake an onsite inspection of their property and compile a depreciation report based on this inspection.
“Estimates of tax depreciation benefits for an investment property made from an office desk will not be accepted by the Australian Taxation Office,” Bennion warned.
“Depreciation is a complex area of taxation. A professional company is required to undertake a depreciation report because of constant changes in tax rules.”
According to Bennion, the ATO is now taking a more aggressive approach to tax deductions made by residential investors and has asked a large number of investors to provide more details about their claims relating to property investments.
Need to know more? You had better come along to our free Investment Property Success Workshop on 24 May. Richard Cartmer from DEPPRO will be one of our speakers, he will help you discover the hidden money within your investment properties.
Date: 24 May 2012
Venue: 433 on Logan, Logan Road, Stones Corner
Time: 6:15pm for a 6:30pm start
Cost: Free
NB: Catering will be provided at this event
You will find more information here.
Tickets are going fast and I strongly recommend you book online here as we are limited to just 100 people at the venue.