If you haven’t owned your investment property for a full year you can still claim depreciation deductions this tax time.
Depreciation deductions can be claimed pro-rata for the period a property is rented out or is genuinely available for rent. According to the Australian Taxation Office (ATO), to be considered ‘genuinely available for rent the property must have been given broad exposure to potential tenants and tenants must be reasonably likely to rent the property.
What is depreciation?
Depreciation is the decline in the value of a building’s structure and fixtures and fittings within it. The ATO allows property investors to claim depreciation tax deductions each financial year.
A tax depreciation schedule prepared by a specialist quantity surveyor is generally required to maximise available deductions and substantiate these claims. Quantity surveyors use legislative tools to make partial year claims more beneficial to new investment property owners.
Should you require further information, please do not hesitate in contacting our office.