When an investment property begins to age and objects inside it start to wear and tear, they depreciate. According to professionals at Deppro, the ATO has already permitted property investors to claim this depreciation in the form of deduction. Property owners can claim depreciation when they secure incomes from their investment property. Property managers suggest expert Quantity Surveyor to their investor clients in a bid to maximise their depreciation deductions. An expert Quantity Surveyor helps in preparing a tax depreciation schedule for property owners’ investment property.
The points discussed below focus on the significance of a depreciation schedule:
1. Importance of gaining loyalty:
It is vital to recommend an expert quantity surveyor to your investor clients. It serves twin purposes. It will benefit the property manager and helps in providing a competitive benefit. Secondly, when you make your investor clients aware of the advantages of tax depreciation, it will help in creating increased wealth for investors. It has been viewed as a value-added service. Offering this service and professional information will lead to improved customer loyalty in the longer run. When you save your investors’ money, the depreciation will raise clients’ portfolios and bring increased business to property managers.
2. Depreciation deductions:
Depreciation has emerged as a non-cash deduction. It implies that no investors need to spend any money in order to become eligible to make a claim for depreciation deductions. Due to this reason, depreciation deductions are frequently ignored. And, it becomes an expensive mistake for the property investors. Depreciation deductions offer significant tax advantages to property investors. When tax time approaches, all property investors must ensure that they claim all deductions for which they are entitled. It will help in maximizing their returns. It is imperative to organize a depreciation schedule prior to the end of a financial year. A quantity surveyor helps in making a tax depreciation schedule for property investors.
3. Claim missed deductions:
There are scenarios when you may end up missing your tax deductions on your investment property. However, the ATO permits you to recover the missed payments for the last two financial years by way of adjusting your tax returns. And, this has emerged beneficial for the first time investors who earlier lacked awareness about depreciation deductions. It has become important to remain on top of your finances by claiming your deduction in the similar applicable financial year. When you delay your claims it will only create additional chaos and stress to your upcoming tax return. Therefore, you must obtain your tax depreciation schedule prior to June 30. It is important because it will help in maximizing your returns and keep your finance on track.
If you have bought investment property recently and waiting until next year to claim deductions, you may miss considerable savings. Investors will be eligible to claim partial year deductions for the duration in which they have owned it. It may be even for a few weeks or days prior to June 30. It is worth noting that the investment property calculator will highlight how much you may need to invest and how much capital gain you may get. You may obtain an investment schedule before the financial year-end and benefit from instant write off.