Homebush Delivery Handsome Rewards for Investors
In this case study, we’re reviewing the depreciation allowances on a new two-bedroom apartment, part of the architecturally inspired residential complex, Lofts III developed by Landpearl.
The Lofts III is a collection of meticulously designed residences with beautiful gardens, offering the perfect blend of convenience, tranquility, and luxury living. Located in Sydney’s flourishing Inner West, Homebush is central to many retail outlets and entertainment precincts. The ideal location for capital growth, and high rental returns.
Our property savvy client, Sally, purchased one of the newly built 103 apartments in the Lofts III, off the plan in 2017. The property settled in 2020 and has been leased enabling Sally to claim depreciation allowances.
Sally approached our Property Tax team to prepare a depreciation schedule to submit with her tax return and offset rental income from the property.
As the apartment was part of a new complex, we were able to include an extensive list of eligible deductions for the Building (Division 43) and Plant & Equipment assets (Division 40) in the depreciation schedule.
Overall, our team calculated a total of $13,899 deductions during the first full year. Over the next 40 years, Sally or any future investor will be entitled to $324,033 in depreciation deductions.
Our team itemised many assets eligible for depreciation allowances including some commonly shared assets by property owners of Lofts III such as:
- solar powered generating systems assets
- fire control and alarm systems
- garden equipment -watering systems, pumps, and timing devices
- security system and equipment – CCTV cameras and monitors
- lift, electric
- ventilation fans.
- vehicle control equipment, gates controls and motors
- air conditioning
- hot water systems
- kitchen equipment – dishwasher, exhaust and range hoods, ovens, and stoves
- barbecue, fixed, sliding trays and cooker
Sally is extremely happy with the value of deductions provided in the depreciation report for her investment property. She can now confidently submit the report with her taxes, knowing it’s compliant with ATO requirements, and checked by experienced Quantity Surveyors in our Property Tax team.
If you have a newly built investment property or one recently renovated, we can help you calculate the eligible depreciation allowances for capital works and or assets. Request a report today here.