SMSFs forfeiting ‘tax advantages’ with property

SMSF investors and their professional advisers could be missing out on significant tax advantages by simply being unaware of the deductions they can claim, according to one tax depreciation expert.

BMT Tax Depreciation chief executive Bradley Beer told nestegg.com.au’s sister publication SMSF Adviser that while many SMSF trustees are taking full advantage of the tax benefits associated with property depreciation, many investors “aren’t doing it properly”.

“A while ago we ran a campaign testing how many people were failing to maximise their depreciation deductions and we found 80 per cent of the respondents needed to improve,” Mr Beer said.

He pointed to several areas where SMSF investors and their advisers are potentially missing out on significant deductions.

“Common or shared areas in unit complexes are often missed. An SMSF may also invest in a commercial property because they run a business from that property and hold it in their SMSF. Sometimes people think because it’s their own property and they’re running a business from that maybe they’re not able to claim deductions but they actually are,” Mr Beer said.

“I’d say the myth that old property doesn’t get it would be the most common. Older property still gets depreciation, it just doesn’t get as much,” he added.

Mr Beer encouraged SMSF investors to have a proper depreciation schedule to ensure they maximise their tax deductions each financial year.

Promoted Content
Recommended by Spike Native Network
MORE FROM NEST EGG
Superannuation, super fees, superannuation member, member fees, Rice Warner, retirement savings, retirement planning, wealth management
Jun 23 2017
Superannuation fees likely to decline
Superannuation member fees have fallen by almost a quarter of a percentage point in the last 10 year...
SMSF, Colonial First State, CFS, June 30, EOFY, End of Financial Year, trustees, non-concessional contributions
Jun 23 2017
Organise electronic transfers early, urges Colonial First State
SMSF trustees need to organise transfers for non-concessional contributions well in advance of next ...
Zenith, BlackRock, Vanguard, fixed income, bonds, bond investing, fixed income investing, bond fund, Jon Howie, Andrew Yap, Nathan Zahm
Jun 23 2017
What rising interest rates mean for bond funds
The capital value of your bond portfolio will take a hit as interest rates begin to climb, but the a...