Andrew prided himself on having some knowledge of investing in properties.
I mean…he owned three of them, so thought he had some layer of expertise.
But when he shared with his parents he was talked into getting a depreciation schedule, and that maybe they should do it for their investment properties, they simply laughed and thought it was a waste of money.
But when Andrew shared with them how he was able to knock $11,321 off his current year taxable income (and repeat a similar result for many years to come) they nearly fell of their chairs…
Like so many property investors, Andrew simply wasn’t educated on how a deprecation schedule worked, and how it is one of the most untapped ways to increase your tax refund each year.
He wouldn’t have booked one, if It hadn’t been from a random conversation where a tax deprecation specialist asked him. They were visiting his property for another job at the time.
‘Do you have a tax depreciation schedule for this property?’
Trying to sound a bit like a professional investor, Andrew fumbled through his answer…
‘Oh well, yes….Um I haven’t yet…but um….can you remind me please what that is again?’
The expert shared that for $695 Andrew could get a depreciation specialist to visit his house and look at all of the things attached to the house that warrant a depreciation. And then you could use these things to reduce your tax.
‘But my house is 20 years old’ Andrew responded
‘It doesn’t matter’ the specialist quickly replied.
….So many investors have no idea how much they can truly save if they get this done, and you can even depreciate not only the construction of the house, but also small things like curtains, driveways, sheds, washing machines, security gates, air conditioning units, timber flooring and carpets, even ceiling fans!!!!’
Andrew was sold and quickly booked in to get a depreciation schedule. He was particularly excited when the specialist said ‘And if we can’t save you at least twice your fee in year 1, I will refund you’
He was so impressed that this helped him get an additional $3300 back on from the tax man this year.
Now Andrew has a depreciation schedule on each of his investment homes, and so does his parents. They are all enjoying a much bigger than expected tax refund. Not just this year, but for many years to come.
If you are interested in Australian Valuers doing a Tax Depreciation Schedule for you, book now and pay BEFORE the July 1 2019, and we will include an Investors Market Report on your area for free (valued at $300). Contact Australian Valuers on 1800 664 094, email at email@example.com or submit the form below.
Editor’s Note: This post was originally published June, 2018 and has been updated with the lasted offer for 2019.