25 October

What tax depreciation deductions can I claim from my brand-new investment property?

If you have purchased or want to purchase a brand-new house or unit, there are great tax depreciation deductions claimable to you!

You’re able to claim thousands in tax depreciation deductions for a brand-new house or unit, particularly if you do not live in it after the settlement date.  For maximum deductions, a tenant must be the first person to live in your brand-new investment property, and if this is the case - You can claim tax depreciation deductions for the whole house or unit.  Yes, you read that correctly.  All of it! 

You are entitled to claim for Division 40 – also known as ‘plant and equipment items’ (eg. stove, carpet, blinds, lights) and for Division 43 – also known as ‘structural component’ (eg. bricks, roof, walls, concrete, hard landscaping – fences, retaining walls, driveways). 

80-90% of the tax depreciation deduction claim comes from Division 43 but together Division 40 and Division 43 total thousands of dollars in tax deductions which reduces your income tax payable.   Tax depreciation is typically one of the largest deductions you can claim from the ATO for owning an investment property. 

How do you claim your tax depreciation deduction?  By ordering a tax depreciation schedule through us!  When you receive your Capital Claims Tax Depreciation Schedule it will forecast the next forty-years of deductions for you. Your accountant will use the deductions that we generate as well as claiming the other deductions available to you (eg. insurances, fees, land rates).   This will then reduce your income tax payable and hopefully get more money back in your pocket. 

Below are three brand-new scenarios, a house, a unit in a small complex and a unit in a large complex and what tax depreciation deductions could be claimable:

Brand-new House

A brand-new house as stated above can claim for Division 40 and Division 43. This brand-new 3 bedroom house can claim the following deductions:

Brand-new house tax depreciation deductions

Unit in a small complex 

A brand-new unit in a small complex as stated above can claim for Division 40 and Division 43 and can claim for common areas (eg. driveways, lighting, fire services, fences, gates, garbage bin area.) 

This brand-new 1 bedroom unit can claim the following deductions:

Unit small complex tax depreciation deductions

Unit in a large complex

A brand-new unit in a large complex as stated above can claim for Division 40 and Division 43 and can claim for common areas (eg. stairwells, gymnasium, pool, BBQ area, basements, corridors, lobbies, foyers, driveways). 

This brand-new 2 bedroom plus study unit can claim the following deductions: 

Unit large complex tax depreciation deductions

If you would like to know what tax depreciation deductions you are entitled to claim from your brand-new house or unit investment property, complete our FREE estimate form online here.  Or you can call Alex our Senior Depreciation Specialist on 1300 922 200.  

 Download as a PDF

CTA Free estimate of deductions 512x150-1

Recent Posts

New call-to-action

Tags

See all