If you own an investment property, you likely understand that paying taxes is part and parcel of owning one. It can be quite heavy on your pocket, unless you could take advantage of tax benefits which could help soften the impact of taxes on your property. We will share with you some of these benefits in this article. However, keep in mind that the information here is meant to apply to as general an audience as possible. The benefits available to you may differ based on your type of ownership structure. With that out of the way, let's get started.
There is also what is called building or capital allowance depreciation. This refers to the property itself, instead of the items inside it. In addition, depreciation is calculated in this case based on the cost of building the property, instead of the cost of acquisition. The value ranges from 2.5-4%, and applies only to properties constructed starting 18 July 1985 and later. Those built before that date cannot claim for building allowance depreciation.
In the case of depreciation, there are calculators online which you could use to determine if you could claim depreciation or not. If you are, you should then contact a quantity surveyor. They will create a depreciation schedule for you, which would outline the value of depreciation based on factors such as the cost of construction.
In the case of deductible costs, you need to get your accountant's help with that. They will be able to help you find out what you can claim as a deductible cost.
Meanwhile, if you're looking for the best deals in your home loan, or if you wish to pay it off sooner, contact Rate Detective today. Our qualified advisors are ready to provide you with rate comparisons of Australia's top lenders based on your personal circumstance. This gives you the power of choice you can't find anywhere else.