Property Tax Depreciation Benefits for Investment Property Owners

Investment property business is a growing sector today. And people are realizing that this is a great way to earn good money. Also, because of the property depreciation advantages this has become an extremely preferred sector.

As you might be aware that an investment property is not considered as a residential estate. Therefore, the tax calculations are also different. Investment property owner can offset the investment income by claiming the depreciation for investment property for the appliances and the assets it contains, because they are believed to deteriorate in value over the time. However, property depreciation is not taken all at once, actually it is calculated over a period of time.

Since having an investment property is a business, the income generated from it is treated as your gross income. Thus, the expenses incurred for running the business shall be deducted from that income. By the way, there are several expenses that can be deducted for property depreciation from the gross income, that include maintenance, interest on mortgage, insurance, advertising/marketing for tenants, and a few more.

Well, depreciation for investment property is one of the most common tax benefits available to investors. This is taken from the gross annual income that provides substantial tax savings for the investment property owner.

However, it’s not possible for everyone to prepare a tax depreciation schedule, because it requires comprehensive knowledge and credible experience. Moreover, the Australian Tax Office (ATO) has authorised only certified and proficient quantity surveyors to prepare tax depreciation schedules for investment properties.

So, if you own an investment property in Australia, and are looking for a reputed Quantity Surveying firm for getting a perfect tax depreciation schedule prepared for you, look no further than Property Returns!!!