Here we are, tax time is upon us and there are certain tax deductions that are assumed for property investors. Property management fees, maintenance work, improvements on the property, insurance, interest (on any loan you may have for your investment) and rates, are all staple claims for an investor.
But there is one tool that some owners tend to overlook, a depreciation schedule. Even if you don’t yet invest in property you should listen up, because when it comes time for you to invest it will pay (literally) to be well informed regarding the topic.
A depreciation schedule sets you up to systematically claim elements of your asset, as they reduce in value over the years. This loss can be claimed on a wide variety of things; from blinds and furniture to flooring and appliances. As you can imagine these claims amount to a significant value over the years, so it is wise to look into everything that you are eligible to claim.
Claim on everything from blinds and furniture to flooring and appliances.
If you are reading this as an investor who is yet to set up a depreciation schedule, it is quite possible that you may have been entitled to deductions that were overlooked in your past tax returns, but the great news is that (in most cases) your past returns can be amended! #greatnews
A quantity surveyor is able to create a depreciation schedule for your property, and furthermore, go back over any claims that you may have missed over the past years. This process is a once off set up, which then lasts the life of your property.
We have a pool of trusted quantity surveyors that we use for our landlords. If you would like us to provide you with a recommendation for your particular situation, or you have any questions about the set up process, feel free to get in touch and we will happily answer any questions.
Disclaimer- The content in our blog is for general information purposes only and should not be relied upon for your specific situation. Please speak to your accountant/quantity surveyor for information specific to your investment.