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Depreciation

What is depreciation? As a building gets older and items within it wear out, they depreciate in value. The Australian Taxation Office (ATO) allows property investors to claim a deduction relating to the building and fixtures it contains. Depreciation can be claimed by any owner of...

When an investor starts claiming depreciation, they can reduce their tax liability. This is because depreciation essentially lowers their taxable income, meaning they may be able to put more money back in their pocket at tax time. For many investors, the additional savings depreciation provides them can...

Depreciation can be a rather complex area with specific rules, qualifying dates, depreciation rates, methods for claiming and pre-determined effective lives of assets. As such, claiming depreciation deductions can be a confusing task for many property investors. For this reason, it’s imperative that investors get a...

The owners of any investment property that generates an income are eligible to claim significant taxation benefits. Of all the tax deductions available to property investors, depreciation is the most often missed. According to Bradley Beer, the Chief Executive Officer of BMT Tax Depreciation, a staggering 80...

Are you an investor who’s heard about the benefits of depreciation and have decided to start claiming? That’s great news for your investment. Claiming depreciation will help you maximise the cash return from your investment property. As a non-cash deduction, depreciation is a quick win for investors...

Owners of income producing properties are eligible to claim tax deductions for a number of expenses involved in holding a property. Most investors are aware of some of the deductions they are entitled to; for example, they know they can claim their Property Manager’s fees, council...

In one of the most dramatic changes to property depreciation legislation in more than 15 years, Parliament has passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 as at Wednesday 15th November 2017, with the Bill now legislation. The new legislation means owners of second-hand residential properties...

The Australian Taxation Office (ATO) allows investors to choose between two methods of claiming depreciation on plant and equipment assets*. These are the diminishing value and the prime cost methods of depreciation. When an investor makes their depreciation claim, they can choose only one of these...

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 was introduced into parliament on the 7th of September 2017 and included legislation changes which will negatively affect residential property investors across Australia. Announced in the 2017 Federal Budget, the amendment denies tax deductions for the decline in...

Recently the federal government announced some proposed changes relating to plant and equipment deductions. Since then we’ve had time to review how this could affect residential property investors. Although we are not expecting the legislation to be finalised anytime soon, we have been talking with government...