Agents underestimate the value of depreciation entitlements, Raine and Horne chief executive officer Angus Raine has warned.
According to Mr Raine, agents should remind their landlords to maximise their depreciation entitlements before the 31 October tax return deadline.
“A lot of agents do not think it is necessary to remind their landlords of their depreciation entitlements because they don’t think they are very important, but if a landlord does not claim their entitlements they are missing out on potentially thousands of dollars,” Mr Raine told Real Estate Business.
Mr Raine said agents have a duty of care to their customer and should ensure they know how to maintain an accurate depreciation schedule and the benefits of doing so.
“Landlords should review their depreciation schedule before the October tax return deadline.
“The cost of a depreciation schedule is also tax deductible so landlords can expect to pay between $650 and $700 for a depreciation schedule. It’s generally a worthwhile investment.”
According to Mr Raine, investors often depreciate expenses such as carpets, light fittings and blinds but fail to depreciate property owned by the body corporate, which they have a stake in.