I’m constantly surprised that when we get new clients with residential investment properties not yet 40 years old, if they don’t have a depreciation report. This can potentially mean a big difference in tax outcomes.
For one of our Mum and Dad property investors, where we did amendments for prior tax returns, it was an additional tax refund over $5,000. So many depreciation & tax rules have changed over the past few years with residential properties, that makes assessing a new investment harder than it used to be, to estimate the tax benefit to you.
If you need help in assessing the tax effect on your proposed property investment, please contact our office at info@in8businessadvisory.com.au. One of our suppliers of depreciation reports, Washington Brown, has produced some information sheets on depreciation reports and what type of reports are available. It is also a useful resource if one of your family or friends are looking at property investment, as they are graphic and easy to read. Here are the reports:
