| Mortgagee in possession sales are increasing. | | | | That's nearly $300 per week in tax deductions! |
| Interest rates have risen. | | | | Inner-city renovated terrace - heaps of |
| Have you seen the recent articles highlighting the | | | | deductions are still available |
| drop in property prices in major capital cities? | | | | First year claim First 5 years claim Total plant |
| Mortgagee in possession sales are increasing. | | | | & equipment Total claim |
| Interest rates have been rising. And this has left | | | | $7000-$8000 $25,000-$35,000 $15,000-$25,000 |
| many who bought at the top of the boom with | | | | $125,000-$150,000 |
| negative equity in their home or investment | | | | That's nearly $150 per week in tax deductions! |
| property. | | | | Unless the property is brand new and the |
| Does this mean that now is a good time to buy? | | | | construction costs are known, then each |
| Well I certainly don't know the answer to that... | | | | investment property must be inspected so that |
| but one thing I can advise is not to let legitimate | | | | construction costs and plant and equipment can |
| tax deductions go unclaimed. | | | | be accurately estimated. |
| Claiming property depreciation on your property | | | | The calculation of a property depreciation schedule |
| will help offset the rising cost of interest rates. | | | | is a complex task which requires skill and |
| Just as you would claim wear and tear on the car | | | | experience in both tax law and construction costs |
| you purchased, you can claim depreciation on | | | | to provide an accurate report. |
| your investment property. | | | | It's important for all property investors to at least |
| Don't let these legitimate deductions go unclaimed. | | | | investigate whether they are entitled to any tax |
| For instance, a brand new two-bedroom unit in a | | | | deductions on their investment property. The |
| high-rise apartment complex with a purchase price | | | | easiest way to find out is for them to contact a |
| of $600,000 will yield the following tax deductions: | | | | reputable quantity surveyor offering some form |
| New high-rise two-bedroom apartment - purchase | | | | of minimum guaranteed return, or the report will |
| price, say $600,000 | | | | be provided at no charge. The quantity surveyor |
| First year claim First 5 years claim Total plant | | | | will always ask a few standard questions to |
| & equipment Total claim | | | | ascertain whether it is worthwhile for both parties |
| $13,000-15,000 $50,000-$65,000 $50,000-$60,000 | | | | to proceed. The fee to prepare a tax depreciation |
| $280,000-$330,000 . | | | | schedule is 100% tax deductible. |