Tax Depreciation

Australian-Valuers-Tax-Depreciation

 

Fact!
It is a sorry fact that almost 80% of property investors don’t claim their building and depreciation benefits.

Why?
Because they are confused about the process and believe their Accountant will handle it, unfortunately Accountants can’t.

Is it legal?
Yes, under current legislation it is your legitimate right to claim these deductions.

It is important to note that if you don’t claim your depreciation entitlements you lose them, it’s as simple as that.

What is depreciation?
If you purchase an asset for the sole purpose of earning a living, then under current legislation you are allowed to claim deductions against your taxable income.

Why was it introduced?
It was introduced in 1985 to help stimulate the economy, similar to the recently introduced stimulus package and the first home owners grant.

How can it assist me?
If you purchase an investment property for $450,000 and the building component is $212,000, fixtures, fittings and white goods etc are $18,000 this equates to deductions of $230,000 over 40years or $5,750 per year!

 

Example of an actual $450,000 house and land package with a build cost of $230,000

DEPRECIATION EXAMPLE
Year Plant Build Total
1 5,250 5,300 10,550
2 3,450 5,300 8,750
3 2,650 5,300 7,950
4 2,150 5,300 7,450
5 1,750 5,300 7,050
Jun-40 2,750 185,500 188,250
Total Deductions 18,000 212,000 230,000

 

Let the tenant and the ATO pay off your property!
Yes that’s right, use the rent from your tenant and your depreciation deductions to pay off your property sooner. In most cases this will reduce the length of your loan by 7 to 10 years, saving you thousands in interest payments.

Guarantee
We guarantee depreciation benefits in the first year double our fee, or we will refund your money in full.

To start saving thousands of $$, please contact us on:
Tel: 1800-664094
Or send an enquiry thru our contact us page