This month I’ll save you money!

By

Expert Advice: by Tyron Hyde

This month I’ll try and save you money – faster!

When buying things for an investment property, I always abide by this guiding principle: “A dollar today is worth more than a dollar tomorrow” … so deduct items as quickly as possible.

Generally speaking, it pays to have a little bit of tax knowledge, that’s why it’s worth remembering that individual items under $300 can be written off immediately.

Even if your portion of a more expensive item is under $300, you can still write it off.

For instance, say an electric motor to the garage door cost an apartment block $2,000. If there are 50 units in the block, your portion is $40.

You can claim that $40 outright – as your portion is under $300.

More importantly, if buying a microwave for your property, buy one for $295 as opposed to $305.

By doing this you’ll be able to claim $295 as an immediate tax deduction, as opposed to depreciating it at the prime cost rate of 10% per annum – where you can only claim around $30 in the first year.

That’s an increase of close to 1,000%!

 

Tyron Hyde is a director of quantity surveying firm Washington Brown. For more QS Corner tips and information on property depreciation including a FREE online tax depreciation calculator, visit www.washingtonbrown.com.au

To read more Expert Advice articles by Tyron Click Here

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : hebersham , springwood , bendigo , bligh park , alexandria

go back