Rental Property - Capital Allowances and Depreciation

One of the biggest tax deductions you can claim on your rental property relates to capital allowances and depreciation.

Assets that are considered "capital" fall into two categories:

Division 43 - Capital Allowances

Relate to structural components of your property (i.e. bricks, tiles, frames, trusses, joinery etc) and are depreciated at rates of 2.5% or 4% per year, depending on the buildings age and use.

Division 40 - Depreciable Assets

Relate to all assets within your property such as hot water systems, blinds, carpet, dishwashers etc.  It can be claimed on any property, regardless of age.

These assets are depreciated over their lifetime and can add significant deductions come tax time.

One of the best ways of maximising your depreciation is to engage the services of a Quantity Surveyor to prepare a depreciation schedule for your property.  We have a range of providers whom we can refer you to.

Please contact KK Partners Group if you wish to discuss your needs further.

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