Did you know that investing in new properties could hold almost $9000 of tax deductions?
Bradley Beerm CEO of BMT Tax Depreciation told Smart Property Investment investors are allowed to claim deductions on capital works, which include the property’s structure and items permanently connected to the property to the total of $5065 per year.
He says this can then be repeated for the next 40 years, starting from the construction of the property. Investors can also claim depreciation on removable plant and equipment assets.
• Carpets (for $1,285);
• Blinds (for $829);
• Ovens (for $354);
• Hot water systems (for $331);
• Garbage bins (for $296);
• Smoke alarms (for $268);
• Cook tops (for $176);
• Door closers (for $167); and
• Exhaust fans (for $122).
Renovations not only add value to the property, but also allow investors to find even more deductions to claim.
While this is all applicable for new properties, Mr Beer mentioned second-hand properties are only applicable if contracts were exchanged before 7.30pm, 9 May 2017.