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NBtax Tax Bites

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Depreciation Allowances for renovations deliver greater tax benefits for investors.

On the surface, this second hand investment property built in the 1970's would not be eligible for depreciation allowances. But a thorough inspection and analysis by our Property Tax Analyst Victoria Lyons, revealed recent renovations and upgrades entitled the current property owner to claim depreciation. 

The property is a one bedroom and one bathroom apartment located in South East Queensland. Due to the age of the original building, the current owner could not claim Building Depreciation (Division 43). On investigation, we found that renovations carried out by the previous owner, and upgrades by the Body Corporate to the building and external areas, as well as shared assets within the complex, entitled our client to claim depreciation allowances.

A comprehensive review of the building, renovation costs, and other records, enabled our team to produce a compliant depreciation report delivering our client, a $5,000 tax savings in the first year. Given the depreciation report was 100 per cent tax deductible, this was a smart investment decision by our client. At NBtax we’re prepared to look beyond the surface to help investors claim depreciation allowances on all eligible investment properties. For more information on our service and depreciation benefits for property investments contact our team.