Renovation deductions aren't limited to the current owner
Claiming depreciation deductions for renovations can be a great way for property investors to recoup some of the costs of renovation.
Depreciation can be claimed on any renovations made to an income-producing property as a tax deduction, as well as for the remaining depreciable value of assets being removed in the renovation process.
Many property investors are unaware that property depreciation claims are not limited to renovations and additions made to the property after purchase. Significant deductions can also be claimed for renovations completed by previous owners of the property.
A specialist Quantity Surveyor is able to identify any recent renovations and additions to a property and ensure to include them in the depreciation schedule. As these renovations are newer than the structure and fittings in the rest of the property, there is more depreciable value available to be claimed.
Having a tax depreciation schedule completed by a specialist like BMT Tax Depreciation ensures property investors are maximising their claim for any plant and equipment items and renovations added to the property by previous owners. For investors purchasing older properties, which would otherwise see fewer deductions, informing them of the deductions available for these renovations and additions could mean a significant improvement to their overall cash flow and add considerable value to the service you provide.