Experienced
property investors knew of this fact all the while. The real good ones have
already factored in the depreciation into the account before purchasing their
next investment. Brisbane property depreciation is the natural consequence of any
man-made material object (usually with some value) to lose its premium value
after some period of time. Property items like homes, cars, machineries and
others will depreciate over time and is aptly termed as Brisbane property depreciation.
The good
news, however, is that depreciation may downgrade your investments but it can
be the source of your claim to depreciation of your investment property against
your taxable income. Anyone who buys properties for income-producing purposes
is entitled to depreciate both the items and the cost of the building itself
against their accessible income. Since this is not a well-known fact, there are
thousands of unclaimed dollars of property investors. For your home, what is
needed is a qualified quantity surveyor to inspect it and prepare a report from
your accountant.
All the
other deductions like interest levies are a continuing process and will have to
continue to be paid as long as the debt is present. Depreciation is sometimes
called “non-cash deduction”. It is the only deduction where you don’t have to
pay for on an ongoing basis. The reason is that the deduction is already
built-in within the purchase piece of your property. For the laymen who know
little (or none at all) regarding depreciation, here’s a short rundown of notes
on what it is and everything that’s related to it. The main reason is that
depreciation happens to all properties which most men have.
There are
two types of allowances available: depreciation on Plant and Equipment and, depreciation
on Building Allowance. Plant and Equipment refers to items within the building
like ovens, carpets, dishwashers, and blinds etc.
Building
Allowance refers to construction costs of the building itself, such as concrete
and brickwork. Both of these costs can be offset against your assessable
income. Depreciation schedule will help you pay less tax. The amount the
depreciation schedule says your claim effectively reduces your taxable income.
Commercial
and industrial properties have different cut off dates. If your residential
property was built after July 1985, you can claim building allowance and plant
and equipment. (You can claim only on plant and equipment if your building was
built after 1985.)
The
Australian Taxation Office has identified that only Quantity Surveyors as
properly qualified can make the appropriate estimate of the construction costs
of a property if these costs are unknown. If the property was built after 1985,
your accountant is not allowed to estimate the construction costs. In this same
manner, real estate agents, property managers, and others are all not allowed
to make the estimate. Quantity surveyors are considered specialists in accurate
measurement of construction costs with a view to maximizing a client’s
financial position in relation to their property assets. To get the
professional assessment regarding Brisbane property depreciation, getting the services
of a quantity surveyor is a good call.
