When you consider that the average investor is entitled to between $5,000 & $10,000 in claims in the first year of ownership alone, that’s quite a remarkable number. So why are so many landlords missing out?

Every building, and the assets in that building, experience wear and tear over time. That’s why the Tax Office (ATO) enables owners of income producing properties to claim this wear and tear as a tax deduction. We know it as depreciation. Yet many landlords are not taking advantage of a perfectly legal deduction, often reducing their ability to pay for repairs, reduce their loan or even fund further property purchases.

Some landlords assume that if they own an older property they can’t claim for depreciation, but it applies to both new & old properties. Yes, newer properties usually incur greater deductions, but owners of older properties can still benefit.

Deductions on the building itself apply to properties constructed after September 1987, but there are also potential deductions for plant and equipment. It is also worth noting that if an older property has been renovated since that date, potential claims are still available, (even if the renovations were completed by a previous owner).

One of the keys to claiming all your entitlements is having a professionally prepared depreciation schedule, so we would recommend talking with your tax advisor if you are not sure that you have had one prepared. Of course, we advise all our landlords to talk to their financial advisor before June 30th as a matter of course, so don’t leave your run too late.

In the meantime, if you have any questions regarding the Melbourne rental market in general, or your rental property specifically, don’t hesitate to give the team at Barry Plant Gladstone Park a call on 03 9330 1088.