Using Tax Depreciation to Unlock the Hidden Value in Your Property Investment - Koste

Using Tax Depreciation to Unlock the Hidden Value in Your Property Investment

Explanation of Depreciation for Tax Purposes
Consider buying a brand-new automobile. Due to normal wear and tear, the automobile’s value progressively depreciates. The same remains true for a number of asset and construction materials of your investment property. Components such as the building structure and assets within it, such as appliances, furnishings, and so on, depreciate as it ages. What’s the most thrilling part? You can claim these depreciations as tax deductions from the Australian Taxation Office (ATO). This is referred to as tax depreciation!

A Real-World Example of Tax Depreciation 
Assume you have a $600,000 investment in a residential rental property. The fixtures and fittings, such as carpeting, blinds, and appliances, cost roughly $30,000. These assets will devalue over time. You could deduct their declining value from your taxable income according to the tax depreciation laws. For example, if a $5,000 carpet has a 10-year lifespan, you can claim $500 (or $5,000 divided by 10) as a tax deduction each year.

Using Experts: Koste Quantity Surveyors
Claiming these deductions necessitates a detailed tax depreciation schedule, which is a document that outlines all of the deductions you can claim during the life of your property.  At Koste, we will offer a complete and ATO-compliant report, guaranteeing you claim every dollar of allowable depreciation. like having a secret weapon in your armory of property investment strategies.

Are you ready to optimise your profits?
Tax depreciation isn’t the most glamorous component of real estate investing, but it is a potent approach for lowering your tax bill while increasing your earnings. It is time to put your property to work for you. Remember, every dollar you don’t claim in depreciation is a dollar you lose. Don’t pass up the opportunity to profit from tax depreciation. Talk to our team and let us assist you to save thousand dollars from tax today. It’s time to put your money to work smarter, not harder.