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You’re losing out on billions of dollars in unclaimed tax depreciation entitlements

Posted by Paul Wilson

Unclaimed tax depreciation entitlements amount to around $17.5 billion per year (Your Investment Property, 2014).

That is $17.5 billion just left lying around! Unclaimed by property investors just like you.

Many property investors simply don’t realise that they could be claiming thousands of dollars extra in entitlementsBy not claiming these entitlements, you are missing out on a valuable opportunity to reduce your taxable income.

Many tax depreciation schedules follow a cookie-cutter approach to valuing property and goods, rather than an informed investigative approach tailored to the client.

By relying on data gatherers, instead of actually visiting the property, those who prepare depreciation schedules could be missing out on huge amounts for their clients.

Recently, I helped a couple claim $40,000 worth of depreciation entitlements for their property.

The couple owned an older block of three units and decided to build a house on the same block also.

They knew about depreciation schedules and that it was possible to claim benefits, but they didn’t think this would apply to them and their old unit block.

So they had never bothered to arrange a depreciation schedule.

When I talked with the couple, I showed them that they could indeed claim depreciation benefits on their new house and also on their old block of units - $40,000 of depreciation benefits in total!

It’s safe to say, they were pretty happy.

You could be claiming an extra $5,000 per property at tax time by just following a few simple steps.

Firstly, I’d suggest using a quantity surveyor to prepare your tax depreciation schedule.

Quantity surveyors are qualified to identify and value capital and structural works, and know the legislation around plant and equipment.

By doing a complete site survey and report, you will have a detailed and accurate schedule that can maximize your claimable amount.

And if you are eligible for deductions and you’ve never claimed depreciation, you could be entitled to a substantial back claim like the couple above.

Most properties, regardless of their age, can offer investors substantial tax benefits through obtaining a tax depreciation schedule.

If you want to determine if you can claim further tax depreciation benefits, or start claiming tax depreciation benefits in the first place, give us a call on 1800 600 890 or email [email protected] //      

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