Tax Deductions on your Investment Property
There are many things you can do, to legally claim tax deductions on your Investment Property
The cost of buying an Investment Property can be offset by Tax benefits that are available to most Property Investors.
The type of Property Ownership Structure that you are working under, will obviously affect the Tax benefits that you will be able to claim, so it is always advisable to seek the guidance of experienced Financial Professionals before making any important decisions.
Property Investors are able to claim Depreciation on their Investment Property. Claims are allowed on the Building itself and certain assets within the Building. Some of these assets include Carpet, Air Conditioners, Cooktops, Dishwashers, Hot Water Systems, Blinds, etc…
Quantity Surveyors can provide you with a Tax Depreciation Schedule
Based on the age of the Property and previous information, a Quantity Surveyor will be able to provide you with a Tax Depreciation Schedule that allows you to claim that depreciation back as a Tax Deduction, thus potentially saving you possibly thousands of Dollars. Even with older Properties, in most cases, it is worth getting a Tax Depreciation Schedule done.
Many items can also be claimed as Tax Deductions, in relation to the purchase and maintenance of the Investment Property. Things like Rates, Landlords Insurance, Bank Account Fees, etc… are some typical examples. Your Accountant will be able to provide you with a full list at Tax time.
There are lots of good books for learning how Property Investment works which can help you to learn and to start you on your journey to property investment success!