Investment Property Tax Deductions

Investment Property Tax Deductions

Along with mortgage interest, the next biggest tax deduction is usually for depreciation. BMT Tax Depreciation specialists are currently offering a reduced fee offer to have a schedule completed for your property. BMT have also created a great YouTube video (link below) explaining the process for claiming depreciation. On average, BMT finds residential property investors $10,000 in the first full financial year deductions. May 15 is fast approaching and is the deadline for FY 2021-22 tax returns to be submitted, there is still time to arrange a depreciation schedule now. 

Click the below link for the BMT YouTube video on details about how to claim depreciation for your investment property

What is a Rental Property Tax Depreciation Schedule?

Depreciation can be one of the largest tax deductions that you can claim each year for your rental property.

A depreciation schedule is a document prepared by a specialist quantity surveyor. This schedule outlines the amount of depreciation available year by year throughout the lifetime of the property, for up to 40 years! Your tax agent will then refer to the schedule when creating your tax return each year, making sure you receive the tax deduction allocated for that years depreciation.

 How do you find out the real cost of owning an investment property?

BMT now have a handy calculator tool called PropCalc, that estimates the likely cash flow on your investment property. This is a great way to compare notes on properties you may be interested in buying before you make a decision.

PropCalc uses property specific information to provide you with the real cost to owning a property. Use the generated information or add your own figures. Key suburb data is provided, and the tool features the ability to include changes in interest rates, maintenance costs, rates, insurance and much more, making property research a breeze. The tool can also help to work out what the depreciaton costs will be, that are of course tax deductible.

For more details please contact us at Shellharbour Marina Real Estate

 02 4295 1550

8/32 Addison Street, Shellharbour

Or speak to BMT to request a free estimate of your likely deductions:

 1300 728 726

Further information from BMT informative flyers can be found below;