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The Successful Investor > Property Investor Toolkit > Blog > Partner Blog > You can claim more tax deductions through depreciation on your investment property when it’s furnished.

You can claim more tax deductions through depreciation on your investment property when it’s furnished.

Property owners who rent their property fully furnished reap significant benefits when claiming depreciation deductions. An investor can miss out on thousands of dollars each year if they are not claiming depreciation or maximising their claim.

The below table illustrates the benefits of claiming depreciation deductions on a two bedroom, two bathroom unit that includes a $16,000 furniture package in comparison to a similar unfurnished property.

 

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As the table shows, the owner of the furnished unit will receive $3,500 in additional depreciation deductions in the first year and $14,500 in extra deductions over five years.

Ensuring all plant and equipment items found in the property are accounted for will contribute positively to the overall return an investor receives. Some examples of plant and equipment items include fridges, microwaves, furniture, dishwashers and rugs.

Investors wishing to take advantage of depreciation to boost their cash flow are advised to enlist a specialist Quantity Surveyor. They will carry out an inspection on the property to ensure no assets go unclaimed. Applying current legislation enforced by the Australian Taxation Office (ATO), a Quantity Surveyor will calculate the highest possible deductions an investor can claim when they complete their annual income tax assessment with their Accountant.

BMT Tax Depreciation complete schedules for over 10,000 Accountant referrals each year and on average find between $5,000 to $10,000 in depreciation deductions for investors in just the first full financial year alone.

For further information on depreciation, property investors can download BMT Tax Depreciation’s handbook here.

Investors who would like a free over the phone assessment of the deductions they maybe missing out on should contact BMT Tax Depreciation on 1300 728 726.