You can claim large deductions even if you haven’t spent money on your property.
It’s that time of year again, time to get prepared for your tax return.
It’s not just about collecting rent, paying bills and getting a reasonable return on your investment. Tax, or more importantly, tax benefits are a significant part of the equation in benefiting financially from your investment.
When it comes to property investment, remember that you are likely to be able to claim significant deductions without even having to spend a cent.
Combine this with negative gearing and it is as good as cash in your pocket.
Many people are aware that they are able to claim depreciation against the building cost for newly constructed properties, however a significant many are not aware that the inclusions in a property are also depreciable. These things include items within the property such as dishwashers, air conditioners, carpet, blinds, even the light switches; and can add up to many thousands of dollars for things that have always been there and you haven’t had to fork out money for.
And did you know that this type of depreciation can still be done for older properties (even if they are 100 years old) and is not just for new or modern properties.
In addition to this, when you renovate an older property, don’t forget to write off the old items that you are replacing such as kitchens, flooring, paint, etc.
For more advice on how your investment can produce better results for you, feel free to contact us anytime. We are always happy to help.