Ever wished you had an undo button in life?
Just backed the car into a pole at the shopping centre? No worries just hit the undo button!
Locked in your home loan interest rates just before the GFC and the rates plummeted? “Undo” it,…. ahh, that’s better.
Made a goose of yourself at the work Christmas Party and lost your job? ….Well you’re probably better off now anyway!!
What if you didn’t know that you were entitled to depreciation claims for your investment property until after you did your tax return last year? No need to undo it, because you can submit an amendment to back claim depreciation for up to 2 previous years (possibly 4 if you are the beneficiary of a trust). You see, as an individual or a small business tax payer you are able to amend your tax assessments for up until 2 years following the date of your last notice of assessment. That’s right you have 2 years to fix your fail, back claim your boo boo…. Increase your tax return!
For those of you that are beneficiaries of a discretionary trust, or even a “potential beneficiary” you could even back-claim for up to 4 years. Yes, even if you are a potential beneficiary you may have 4 years to amend, see Yazbek V Commissioner of Taxation (2013).
So, if you have just found out that you have been missing out on $7,000 in depreciation claims for the past 3 years this could be a bumper year for you. You can amend your previous 2 years now and then complete this years after June 30.
Order your schedule before it’s too late to amend your previous year’s claims, because once that deadline has been passed there is no undo button.
If you own an investment property, the best way to ensure your depreciation deductions have been maximised is to use a depreciation schedule prepared by Capital Claims Tax Depreciation. For an estimate of deductions you may be entitled to, or to have your current depreciation schedule reviewed free of charge, please don't hesitate to get in touch.
Mark is an expert quantity surveyor, business owner, public speaker and property developer. With 20+ years experience in the construction and quantity surveying industry Mark’s specialist expertise have been sought in consultant capacity by professional bodies such as the National Institute of Accountants and the National Tax and Accountants Association, and he has presented at various property and tax seminars and expos nationwide. Mark holds a Bachelor of Construction Management from the University of Newcastle, is an affiliate member of the Australian Institute of Quantity Surveyors and a Registered Tax Agent.View all posts by Mark Wilkins