Does your Property Manager know the basics of a tax depreciation schedule?
Depreciation is the biggest non-cash property deduction that property investors can claim and the second-largest deduction overall, behind loan interest. If you are a property investor with multiple properties, you’re probably claiming depreciation for some of your purchases.
Depreciation is the wear and tear on a building, which you can claim some of each year as a tax deduction. However, there are several differences between capital works deductions, which you can only claim when undertaking major renovations or construction work, and those for regular maintenance and repairs.
If you own a rental property, you can use depreciation to decrease your taxable income. In other words, if your rental property generates income in excess of expenses and mortgage interest, then you may be able to depreciate the value of it over time.
Our property management service lets you focus on your business, so that you can grow your portfolio without the stress of managing it. Our team is available to ensure everything is working as expected, and will keep track of all necessary maintenance and repairs.