Investment properties can attract a whole raft of tax benefits...
If you have the right information.
Did you know, if you buy a residential investment property where the construction commenced after 18 July 1985, you can claim depreciation on things like the brickwork, concrete, etc.
This can add up to thousands of dollars in tax deductions.
BUT if construction commenced on 17 July 1985 – you get nothing! So finding out the construction commencement date is pretty important.
So how can you determine when construction commenced on a property?
A. Ring the local council or make a request in writing. This is often the most accurate way of finding out. However, some councils do charge a small fee.
B. Check with the local utilities, like water and electricity, to see whether they can ascertain when these services were first delivered to your property.
C. If your property is a strata-titled property, check when the title was registered. This gives you an indication of the completion of construction and you can try and work back to the construction commencement date.
D. Check the hot water system. If original, it should generally have the installation date stamped on it.
The date of construction is not always easy to find, and as quantity surveyors, we sometimes find ourselves playing detective!
Tyron Hyde is director of Washington Brown and has over 15 years experience in the construction and development industry. Considered one of Australia’s leading experts in property tax depreciation, Tyron regularly presents at industry conferences and events and has published numerous articles on tax depreciation and property investment.
Tyron has a Bachelor in Construction Economics from University of Technology Sydney.
Click here to read more tips from Tyron!
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