Ensure you never miss an issue of the
real estate business bulletin
5 not-so-obvious tax claims for investment properties

5 not-so-obvious tax claims for investment properties

Tax
by Tim Neary 0 comments

BMT Tax Depreciation has compiled a list of five uncommon items that property investors can claim tax deductions for.

1. Bathroom accessories

Bradley Beer, CEO of BMT Tax Depreciation, says that bathroom accessories are modest additions to an investment property that can be easily overlooked, but investors may be able to claim around $125 in deductions for things such as toilet brush holders, shower caddies and soap holders.

“As these assets cost under $300, the ATO allows investors to claim their full value as an immediate deduction in the first full financial year,” Mr Beer says.

2. Holiday rental assets

Investors with holiday rental properties may need to purchase assets so guests are equipped to enjoy their stay, says Mr Beer.

“Such as kitchen cutlery or crockery sets,” he adds.

“If these items cost an investor $285, they can claim their full value in the first financial year of deductions.”

3. Outdoor assets

Many investors think that deductions are only for assets contained inside a property’s structure.

“However, outdoor assets can attract valuable deductions as well,” says Mr Beer.

“Artificial grass or turf matting is considered a removable plant and equipment asset. If an investor outlays $960 to install it, then they may be able to claim a $180 deduction in the first financial year and $841 cumulatively over the first five years.”

4. Home automation systems 

Some investors may upgrade their properties to enhance their market appeal, says Mr Beer, and in doing so add big ticket assets to their property which can attract valuable deductions.

“An investor may be able to claim a first-year deduction of $1,270 for a home automation system that cost $6,350 and $4,269 in cumulative deductions over the first five years.”

5. Green assets

“Some investors may install ‘green’ assets to enhance their property’s energy efficiency, and in doing so, may also save money on energy costs for their tenants,” says Mr Beer.

“If an investor chooses to add a solar-powered generating system that costs $5,250, then they may attract a first-year deduction of $525 and $2,150 in cumulative deductions over the first five years.”

5 not-so-obvious tax claims for investment properties
lawyersweekly logo
promoted content
Recommended by Spike Native Network
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?