Property Depreciation

Property Depreciation | ATO | Accountant | Bayswater

Property Depreciation as a Tax Deduction

A property's depreciation is the natural wear and tear that occurs over time to its assets. Depreciation can be claimed as a tax deduction by owners of income-producing properties. Tax deductions for depreciation can be claimed for up to forty years, making it the second largest tax deduction available to property investors.

Property managers understand the importance of maximising financial benefits for their clients. Without a trained eye, investment properties can offer a treasure trove of tax deductions.
Five commonly missed hidden deductions:

1. Underfloor heating
In an average-sized house, underfloor heating can yield significant deductions of up to $10,000.

2. Re-stumping a home
Older properties may require re-stumping, which involves resetting or replacing the stumps that support the subfloor. The depreciation deduction for this necessary improvement can reach $13,000.

3. Inconspicuous re-wiring and re-plumbing

Inconspicuous rewiring and repiping can generate a total depreciation deduction of approximately $16,000 for properties that require them due to age or damage. It is still possible for the current owner to claim these improvements even if they were completed by the previous owner.

4. Solar pool heating
The solar pool heating system is often hidden on the roof, making it easy to overlook.

5. Sewage treatment assets and tanks
The sewage treatment assets and tanks on rural properties are typically hidden from view. Underground sewage treatment tanks and piping can result in a depreciation deduction.

The importance of thorough site inspections
The depreciable portion of a property is almost every inch, but to determine the maximum amount of depreciation, a trained eye must inspect the site. These hidden deductions can be worth thousands of dollars if you don't claim them. 

Thank you for reading!
Should you have any queries in regards to the above please contact our office on (03) 9728 1448

The TAS Team
3/653 Mountain Highway, Bayswater VIC 3153

Matej Buckovsky (CPA)

Accountant and SMSF Specialist/Registered SMSF Auditor

Matej is a Certified Practising Accountant with over 10 years of combined taxation, auditing, and business advisory experience.



Consultancy (Financial Services, Civil Engineers)



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