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Property Tax Q&A

At NBtax we are often asked many questions in relation to property tax but as Quantity Surveyors, we are restricted from giving advice which relates to accounting matters. Fortunately, we have a network of highly qualified advisors we can call upon to give their professional opinions and expertise. Today’s response is provided courtesy of Brett Bell from Bell Group Accounting in Victoria.

Question:

"I am a resident of Australia and own a townhouse in Queenstown New Zealand since April 2017 which I lease out. Can I claim depreciation allowances for this investment property?"

Answer:

“It is important to firstly point out that depreciation rules changed on the 9th of May 2017, however, given that you acquired your property in April 2017 you will not be affected by the new depreciation rules. As such, your property is available for depreciation claims on both the fixtures and fittings plus the Building write off (depending on year of construction). Now we need to consider the fact that your property is situated outside of Australia. Whilst the Australian Income Tax Act doesn’t specifically exclude foreign investment property depreciation, you do have a requirement to obtain a tax depreciation report via a suitably qualified Quantity Surveyor firm, such as NBtax by Napier & Blakeley.” Brett Bell.

If NBtax can assist you with the preparation of a property depreciation schedule, please contact us on 1300 730 382 or request a free quote via https://www.nbtax.com.au/tax/order-tax-schedule