What is tax depreciation?
It is a tax deduction claimed for the natural wear and tear of an income-producing building and its assets over time. It is generally the second-biggest tax deduction for property investors, after interest.
In order to receive the highest tax deduction for your investment property, it’s a good idea to speak to a building and pest service who can conduct a depreciation schedule. Pulse Building & Pest Services can send one of our experts to give you a rundown of building allowance costs. It doesn’t matter if your investment property is residential, commercial, old or new. The service is 100% tax deductible too, meaning that you can only financially gain from organising your own rundown. If you still find the notion of a tax depreciation report a little daunting, rest assured that the Pulse Building & Pest Services experts will explain everything that you need to know. You will be left with a terminology glossary, so that you will be aware of what you can claim and at what rate.
Wear and tear of your property is natural and to be expected, so have your tax depreciation report conducted before and after any renovations, you invest in. This will ensure that come tax time, you can claim as much as possible, yielding you the highest feasible tax deduction.
If you are looking at getting involved in property investment, give Pulse Building & Pest Services a call on 1300 697 857 and book in an investment property tax depreciation report so that you can see in black and white what wear and tear will require attention and what financial risk you are taking. Most of all, you can enter into the investment with an understanding of what tax breaks you can take advantage of and how that will directly affect your portfolio.