Tax Depreciation Schedules

When it comes to depreciation on a home there are two types of allowances available: depreciation on Plant and Equipment, and depreciation on Building Allowance. Plant and Equipment refers to items within the building like ovens, dishwashers, carpet & blinds etc. Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income.
So why should I consider depreciation when purchasing an investment?

Simple, the higher amount of depreciation you have to offset you taxable income the lower your tax payable and the more tax return you will receive. The amount the depreciation schedule says you can claim effectively reduces your taxable income because it’s taking into account how much it costs you to own and maintain the property.

If you would like to find out more about tax depreciation please get in contact with us.