How To Pay Less Taxes On Your Property
Your property is a valuable investment, an asset that can be yours in the long term. So why not claim a tax deductible on your investment.As a property owner you can claim the depreciation of your own investment against your taxable income.Property buyers would take depreciation into consideration when shopping for new property. If you purchase property for in order to make money then you are entitled to depreciate the building and the items within it against their assessable income. If you don’t take the necessary steps to evaluate your property you could let thousands of dollars to go without being claimed. So if you want to avoid that then here is some valuableinformation on what depreciation means and how it can save you from paying taxes.
Basic idea of property depreciation
Property depreciation allows you to evaluate the buildings construction expenditures such as concrete and brickwork. The costs calculated can be offset against your gross income. In Australia, if your property was built after July 1985 then you’re eligible to claim and pay less taxes.
Preparing a depreciation schedule
A tax depreciation schedule Melbourne will help you pay a smaller amount of taxes because the sum the depreciation plan says you claim efficientlylessens your taxable income. It is important to note that depreciation is known as a “non-moneyderivation” since it’s the main deduction that you don’t need to pay for regularly. A depreciation schedule would take approximately 2 to 3 weeks to complete.
Allow quantity surveyors to inspect property
By allowing an expert private building surveyor to inspect your property you are guaranteed to not miss out on any deductions. In Australia, the Australian Institute of Quantity Surveyors Code of Practice dictate that site assessments are necessary to fulfil Australian Taxation Office (ATO) requirements. Furthermore, if the property you bought was built after 1985 you are not allowed to use an accountant to evaluate the costs. ATO requires surveyors to estimate the cost as it requires someone who has experience in this field and they could also assist the client because they would try to maximise the client’s financial position in relation to their assets.
Cost of a depreciation schedule
This could vary based on a number of factors, including the type of property you have purchased, location and size. Most quantity surveyors would try to save you twice your fee in the first year or offer the report for free. Even the amount charged by the surveyor is 100% deductible.Depreciation is something that will help your bottom line and with those savings you could reinvest in your own property or consider another investment. The reasons above should encourage you to get a depreciation report because you have nothing to lose and many tax deductions to gain.