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Failure to claim deduction sees landlords miss out
A number of landlords could be missing out on thousands of dollars by not claiming a deduction, according to a tax expert.
Failure to claim deduction sees landlords miss out
A number of landlords could be missing out on thousands of dollars by not claiming a deduction, according to a tax expert.
Mark Wilkins, director of Capital Claims Tax Depreciation, said owners of rental properties can boost their tax returns by thousands with tax depreciation deductions.
“Tax depreciation is the deduction that you can claim for the wear and tear and ageing of an investment property,” Mr Wilkins explained.
“Yearly deductions are typically thousands of dollars, and it is often one of the single biggest deductions claimed by smart investors.”
Mr Wilkins said there are some property owners that are seriously missing out by failing to capitalise off of the deduction.
“Whether the property is new or old, there could be thousands of dollars of tax deductions available to owners for depreciation,” he said.
“Even properties bought second-hand can have thousands of dollars to claim in the building and renovations completed over time.
“Our depreciation schedules typically report $6,000-$12,000 in deductions for the owners in just the first year.”
According to Mr Wilkins, an investor can claim a tax deduction for depreciation just like any other common expenses such as:
• Council rates
• Bank and professional fees
• Interest
• Repairs and maintenance
“All that is needed is a depreciation schedule prepared by a professional quantity surveyor. Ordering a depreciation schedule is simple and the one-off fee for a 40-year report (years of reported tax deductions) is 100 per cent tax-deductible,” he said.
“Bonus – if the investment property has been owned for a few years and the depreciation claims have never been made, landlords could be looking at a bumper return.
“Most investors have the ability to amend returns for previous years and back claim tens of thousands of dollars in unclaimed deductions.”
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