It’s common for many property investors to assume their accountant will automatically claim all of the deductions available for their rental property. However, if your investment property was constructed after 1985, your accountant isn’t allowed to estimate your construction costs.
The tax office identify licensed Quantity Surveyors as being properly qualified to estimate your construction costs, if you don’t already know those costs.
So, if you purchase an established property that was built by the previous owners, your Quantity Surveyor can estimate your construction costs for that property.
However, when you buy or build a new property, the construction costs are already known. Your accountant can see the total cost you paid for the construction, but they can’t estimate the individual items that might be depreciated at different rates.
For example, the cost of your oven, hot water system, and floor coverings might not be separately itemised on your building schedule, but they can be depreciated at different rates than the actual building.
In order to maximise the deductions you can claim on depreciation, property investors can engage the services of a Quantity Surveyor. The Quantity Surveyor will create a detailed report that you can give to your accountant at tax time.
Using the detailed information supplied in the report, your accountant is then in a better position to maximise the number of deductions you can claim, which could effectively help you to pay less tax.
If you’re keen to maximise the available deductions on your investment property, call us today on 1300 832 554 and discuss how we can help you maximise your property investment deductions.
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