I bet you never thought that property depreciation could be your best friend! It sounds like a scary concept but truth is, the everyday wear and tear on your property can work in your favour and provide you with a variety of tax breaks.
What can I claim?
There are two kinds of property depreciation allowances:
-
Plant and equipment (carpets, blinds, whitegoods, hot water systems, heating, light shades, etc.). Each type of deduction attracts varying rates of depreciation.
-
Capital works (structural elements such as windows, brickwork and doors). You can claim all capital works items at a flat 2.5% per annum.
What you need to know before you claim
-
Older properties can claim depreciation
-
You can depreciate renovation works, but make sure you get advice from a quantity surveyor before you start so you know how much you can claim
-
You can backdate depreciation on your property if you forget to claim.
If you have any questions on depreciation and how it can work to your advantage reach out and let’s talk.
My Very Best To You Always,
