In this case study, customer Tara Young walks us through her experience with claiming a Tax Depreciation Schedule on her recently acquired investment property.
Tara used her time during the 2020 COVID lockdowns to evaluate her financial resources and was fortunate to buy her first investment property.
After purchasing a single-dwelling house built in 2012 in Moonee Ponds, Victoria, Tara wanted to explore ways she could reduce her taxable income as an investor. She was in it the for the long haul and determined to have a long-term plan as a new property investor.
‘I knew there were some tax benefits for property investors, but I didn’t know what I could claim or how to do it.’
She learnt it was possible to claim depreciation on the investment property and wanted to find more information on how this could benefit her and if it could apply to her and her investment property.
She contacted Opteon to obtain a quote for a Tax Depreciation Schedule and wanted to speak to an expert to see how Opteon could help her.
‘The thing that first set me at ease was finding out I wouldn’t have to pay anything unless Opteon were sure that I’d be able to claim depreciation. They basically assess your property before charging you, so it was a no-brainer as far as I was concerned.’
Providing some simple details on her property including the address, age and type of property, whether it had been previously renovated and if the tenant owned the loose furniture, she was then provided a quote and connected to an Opteon Tax Depreciation expert.
Grant Roberts, Opteon Quantity Surveyor, provided Tara with information on how the Australian Tax Office (ATO) allows for the costs of construction and fit out of investment properties to be claimed back over time, against the income earned on a property. He explained how a tax depreciation report details the eligible amounts that can be claimed in a tax return over a 40-year period.
He provided her with an estimate of the remaining depreciation left for her property and what she could be entitled to claim based on her property.
Once Tara accepted the quote, she arranged a time for an Opteon Valuer to inspect her property, complete a comprehensive internal & external on-site audit, and note all the depreciable assets that she is entitled to claim.
Within a few days after the inspection, she was provided with an Opteon Tax Depreciation Report, detailing the available depreciation for her investment property.
She then provided the Opteon Tax Depreciation Report to her accountant to lodge with her individual tax return, reducing her taxable income by $11k in that financial year alone.
‘After initially thinking my property was too old to claim depreciation, Opteon helped me claim $11,000 back in one financial year! I couldn’t recommend this service more for any investment property owners.’
Disclaimer:
This case study is provided by Opteon Property Group Pty Ltd for example purposes only. The contents do not constitute advice and should not be relied upon as such. Formal advice should be sought in particular matters. Opteon’s quantity surveyors and valuers are qualified and experienced in providing depreciation schedules of your property. Opteon does not provide accounting, specialist taxation or financial advice. Liability limited by a scheme approved under Professional Standards Legislation.
