Do you own an investment property, pay tax and want to get some back?

Get in quick… Only days left! Claim your deductions before the end of JUNE!

Order your Schedule today, pay before June 30, and 100% of our fee can be claimed this financial year.

Our report starts from when your Tenant starts paying you rent, not when we look at your property.

We’d like to ask you:

  1. Are you considering a Tax Depreciation Schedule?
  2. What do you risk by leaving it?
  3. Is now the time to spend money to improve your property?

These are some of the questions you should be asking yourself over June!

While every investment property and return are different, we guarantee that our total claimable deductions between capital loss and annual depreciation WILL BE 4 TIMES our fee…

IF NOT, there will be no charge for our service.

Plus, better still, the fee to complete the service can be claimed back in a few days time!

Not sure how depreciation works? You can read and learn more about it here.

What do I risk by leaving it?

If you have owned the property for some time, under current ATO legislation the ATO allows us to backdate the report, the financial year we are in and the previous two. So engaging us before June 30, we potentially can commence your depreciation claim from the 1st July 2015.

When the financial year ticks over, we could be limited how far we can backdate this report. We can talk you through your personal scenario.

Is now the time to spend money on my investment?
Let’s look at spending money on your property investment before 30th June means!

Take your hot water service as an example.

And assume it has been depreciating for two years, The value of it is $2,400. The ATO suggests it should last 12 years, which allows a depreciation claim of $200 each year.

 

  Hot Water Service Value   Depreciation /
Capital Loss  
   Year 1  $2,400  $200
   Year 2  $2,200  $200

 

Now let’s look at if we replace or upgrade the hot water service after these two years.

 

  Hot Water Service Value   Depreciation /
Capital Loss  
   Year 1  $2,400  $200
   Year 2  $2,200  $200
  Scrapping
Adjustment
– $2,000  $2,000
  New Hot Water
Service
$2,400 Added to property
depreciation/capital loss
  Total $2,600  

 

So if you replace a second-hand hot water service, as shown above, the investor can claim a total of $2,400 as a capital loss when the property changes ownership. The new hot water service cost will start depreciating annually and provide a depreciation claim of $200 each year.

Other items in your investment that have been assessed and attract depreciation behave the same. To be able to scrap an item, the property needs to be assessed through a Tax Depreciation Schedule before establishing its value.

Spending the money and upgrading your property now could keep your investment performing better and help reduce your taxable income. Call 1300 RPM NOW or contact us online to arrange your Schedule today!

 

Hot water system depreciation