John Sage Developer Queensland: How does Depreciation in Rental Property work?

Wear and tear are unavoidable when it comes to owning a property investment. Yet did you realize you might exploit the drop in value of your rental property to save money on the next tax return?

As an investor, John Sage, an expert real estate agent, property investment depreciation can be the ticket to considerable savings. You can save thousands of dollars in taxes by understanding what qualifies and does not qualify for this tax break.

Learn as John Sage sheds light on investment property depreciation, how it works, and its benefits.

How does rental property depreciation work?

To begin, John Sage observes that the ATO mandates all residential buildings built beyond 1985 to have a quantity surveyor provide a depreciation plan for any rentals. They will be capable of inspecting your property. Also, they can review & record any relevant things and estimate the construction or asset costs you can anticipate to claim.

As previously stated, this depreciation schedule will be divided into two major categories: Capital Works Allowance and Plants and Equipment. Working with a qualified quantity surveyor helps guarantee that you take advantage of every potential tax benefit and don’t leave any money on the table.

According to John Sage, this report should cost around $400 and $750 to produce. Then, you can give this document to the accountant to assist you in claiming depreciation on your investment property as a deduction on your subsequent income tax return.