Tax depreciation on investment property with Billings + Ellis
Together with specialist partners we can ensure that investment property owners are claiming the maximum allowable depreciation deductions.
What is depreciation?
As a property gets older, and the building and items within it wear out, owners of income-producing properties are allowed to claim a deduction relating to this wear and tear.
Depreciation and capital works deductions can be claimed by the owners of a variety of building types including residential rental properties, and commercial properties such as offices, hotels, restaurants, retail spaces, educational facilities, warehouses, and agricultural properties, among many others.
Depreciation can be claimed for both capital works (fixed items such as windows, mortar, and concrete) and plant and equipment items* (removable assets within a property such as carpets, air conditioning units, and smoke alarms).
On average most residential investors are able to claim $5,000 to $10,000 in depreciation deductions in the first full financial year alone.
Despite these significant savings, research shows that 80 percent of property investors are failing to maximise the deductions claimed from property depreciation and are therefore missing out on thousands of dollars in their pockets.
It is an ATO ruling that qualified quantity surveyors are used to determine the deductions claimed for property depreciation. Billings + Ellis has partnered with the property depreciation specialists, BMT Tax Depreciation, to deliver ATO-compliant services to clients with investment properties.