Reduce your taxes and offset rental income ORDER NOW

NBtax Tax Bites

image description

Renovated Investment Property Caters to Tenants with Disabilities and Delivers Depreciation Tax Benefits.

It’s not everyday we receive a request to inspect an investment property that has been renovated to cater for people with disabilities. And, we’re very encouraged to see the property sector is moving towards greater inclusiveness by providing residential housing to support those with specialist care needs. 

In this case, our client owned a residential free standing Queenslander style home. They completely gutted and rebuilt the property to comply with the requirements for people with disabilities including widening passageways, electronic doors, bathrooms, new kitchen, plus fitness or physio room.

Also, new plant and equipment assets were purchased to provide specialist facilities for the tenant including a lift, audio visual equipment, smart automation systems for easy voice activation of electronic equipment in the home, and security systems.

Our Property Tax Analyst Jason Setefano was pleased to help our client who has spent considerable costs in renovating their investment property to meet the needs of people with disabilities. After completing a detailed inspection of the property, our Property Tax Team found a total of approximately $45,600 in deductions claimable during the first full financial year for the Building and Plant & Equipment assets. In this instance overall, our client can expect to claim up to approximately $870,000 in depreciation allowances for Division 43 and 40.

As well as the typical white goods and floor covering assets, specialist items for disability care were included in our depreciation schedule care such as:

  • Electronically operated blinds
  • Amplifying and music equipment
  • Automatic Entry System and Mechanical Door Closers
  • Home Smart System
  • Power management equipment
  • Access control systems, code pad, door controllers, detectors and noise makers, CCTV cameras and monitors
  • Detection and alarm systems, heat, manual call point, multi type and smoke detectors
  • Garden Watering Systems control panels, pumps and timing devices
  • Electric lift and elevator.

Our Property Tax team was delighted to have helped our client obtain significant tax benefits through depreciation allowances for the extensive renovations undertaken to support people with disabilities. These yearly depreciation deductions will help them to offset rental costs, and manage cash flow in the future.