Did you know that you may be able to claim property depreciation on your property, even if it is 10, 20, or even 40 years or older? Most property owners can claim a depreciation deduction regardless of when the construction was completed.
What You Need to Know to Process a Claim
In order to qualify for an investment property depreciation deduction on your taxes, you’ll need to know a handful of information, including:
• When the construction of the property began
• When the construction of the property ended
• Information about the type of construction
• What company performed the construction
• How much the construction cost (this is different from the purchase price of the property)
• Information about when the property was used to produce income, including what dates it was used for income
Different Rates for Different Dates
Depending on how you responded to the questions above, the ATO will set a different depreciation rate on your property. For more information about how you may be specifically affected, it’s always best to have a full report completed and then contact the ATO or visit their website for more information.
Why Have A Depreciation Report?
You may know the answers to the above questions, but a qualified surveyor will be able to create a depreciation report that will ensure that you claim all of the deductions that you’re entitled to (many of which change on an annual basis). Trained and certified surveyors have the duty of staying up to date with the latest government rates, rulings, as well as interpretations, so you’ll be guaranteeing yourself a higher return if you hire a professional.