From our business partner, Gerhardy Whitelum Taxation & Business Advisors, 24 Gawler Street, Nuriootpa.
As a house gets older and the structure starts wearing wear out, it depreciates in value. The Australian Tax Office (ATO) allows owners of rental properties to claim a tax deduction for this wear and tear.
Capital works deductions can be claimed on the building’s structure and items that are permanently fixed to the property (ie built in kitchen cupboards, driveways, fences)
Many investment property owners are unaware that claiming capital works deductions is a significant taxation benefit.
So, if I have purchased a house which was built by, or renovated by someone else, how do I know what the value of the structure and improvements is when I buy it?
To claim a deduction you generally need to use a specialist Quantity Surveyor. The Quantity Surveyor will provide a comprehensive capital allowances schedule which will outline the deduction available for each financial year.
If you require clarification or advice on any of this information, please contact us:
P: 08 8562 4332
24 Gawler Street
Nuriootpa SA 5355