Tax Minimisation Strategy # 5 – Rental property depreciation reports
Tax Minimisation Strategy 5 – Rental property depreciation reports
Obtain a Qualified Quantity Surveyor to conduct a valuation of your fixtures and fittings that are in your rental property, (such as Hot Water Service, Stove, Blinds, Carpets, and Light Fittings etc.) to work out the year-to-year tax deductible depreciation. Most of these items lose value over a period of time and can be depreciated, which is a tax deduction that can increase your negative geared loss, or minimise the profit on a positive geared property.
If your rental property has recently been built, you will also be entitled to a 2.5% capital write off deduction on the construction costs over 40 years. Please also note the Qualified Quantity Surveyor’s report is also a tax deduction.
The 2017 Federal budget has restricted the fixtures and fittings tax deduction for any new rental property owners after the May 2017 budget night. However the building 2.5% capital allowance will still be claimable.