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NBtax Tax Bites

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Botany Apartments Offer Bonny Tax Benefits through Depreciation

With plenty of new residential apartments on the market it’s no wonder we are seeing a greater uptake by investors. One of the many benefits of owning property as an investment is the opportunity to offset rental income and expenditure. Capital allowances allow property owners to increase the return on their investments and reduce their taxable income. 

Our Property Tax team are experts in tax legislation and construction costs. We’ve helped hundreds of property investors claim thousands of dollars in deductions for many years. 

The Madden Close Apartments at Botany are another example of how our clients have benefits. 

Built last year, these stylish contemporary apartments are eligible for investors to claim depreciation allowances on both the Building (Division 43), plus Plant & Equipment assets (Division 40).    

The apartments feature:

  • 3 meters high ceilings in the living and dining area
  • High quality stainless-steel appliances (gas cooktop & dishwasher)
  • Internal laundry with dryer
  • Airconditioning 
  • Large courtyard supplied with gas fitting for outdoor entertainment 

Our NBtax team was engaged to prepare a comprehensive and compliant Depreciation Schedule for our client to submit with their income tax. Our Quantity Surveyors calculated up to  $15,000 in depreciation deductions for the first full year. We also calculated the diminishing value of these assets over 40 years, totaling up to $328,500 in tax depreciation deductions. 

Below are some of the assets eligible for depreciation allowances on these properties.

  • Kitchen appliances including rangehood and microwave
  • Blinds, door mats 
  • Air conditioners 
  • Solar powered generating system assets
  • Access control systems, swipe card readers, 
  • Vehicle gate controls and monitors 
  • CCTV cameras and monitors
  • Fire control and alarm systems

Our client is thrilled to be able to offset their rental income and manage their cash flow with depreciation allowances. As their say “cash flow is king” in property investment. Gain a better insight into managing your cash flow and reducing your taxable income through property depreciation allowances with our comprehensive depreciation schedule. Contact us to organise you Property Depreciation Report.