Depreciation - Unlock the hidden cash flow in your investment property
According to depreciator.com.au 80% of property investors don’t take advantage of depreciation. To claim depreciation, you need a Tax Depreciation Schedule put together by a Quantity Surveyor. A Tax Depreciation Schedule is a report on all the items in your investment property that are going down in value. Basically with property it is the land component that is appreciating and the house and most of the things in and around it that are losing value.
Some examples of what items you can depreciate are:
- Hot Water Systems
- Carpets and other floor coverings
- Heaters
- Stoves
- Air Conditioning
- Curtains
A Tax Depreciation Schedule cost between $500 - $800 to prepare, but the years of tax return bonuses this could create for you should well out way the initial out lay.
Check out depreciator.com.au for more info.