Fixed price Depreciation Report on Investment Properties ORDER NOW

NBtax Tax Bites

image description

Life Saver for Property Investors via Depreciation Allowances

Residential property investors seeking tax relief have a built-in life saver through depreciation allowances. Now more than ever, investors need to be smart and claim all eligible deductions. Newly built properties offer substantial tax savings. 

The stunning Gallery House Apartments recently completed in Brisbane is a perfect example of how one property investor gained $60,000 in tax benefits for the first year, on their investments. 

Our client purchased two apartments both with three bedrooms and two bathrooms and two car spaces, one was slightly larger. Along with the apartments is access to shared facilities such as a pool, and entertainment areas. Our client is entitled to a portion of these shared assets as well. 

To complete the depreciation schedule, our NBtax Property Analyst inspected these properties to determine the types and quality of the plant and equipment assets, plus shared assets. This information became the basis of a comprehensive register of all assets eligible for depreciation. 

Our Property Tax Analysts are very skillful at identifying eligible depreciation assets, including those often missed such as lifts, fire control and alarms, automatic entry systems, gardening systems and even blinds. 

Working together, our Quantity Surveyors and Property Tax team analysed the construction costs, calculating the value of depreciation on the building over 40 years. 

The result was s staggering $28,500 in deductions for the first full year, on the smaller apartment. And, a further $31,500 in depreciation for the first full year on the slightly larger apartment.

Our client was thrilled to receive a total tax savings through deductions of $60,000 per annum, for both units, based on the combined building and plant and equipment depreciation allowance.

Not bad for a small fee to engage our services. Oh, and the client claimed 100 percent of our fee as well. 

Reach out for your tax lifeline, through property depreciation.

Contact our Property tax team for help today.