When everything old is new again!

By
Expert Advice with Tyron Hyde - 23/10/2018

In this month’s QS Corner - When everything old is new again!

As you probably know by now, property investors can no longer claim depreciation on second-hand depreciable assets like ovens, dishwashers etc.

So even if the property you buy is only one year old, the new depreciation laws apply.

So, from a tax point of view, you might be better off buying an older unit and upgrading the depreciable assets.

Why? Because if you do renovate the property and replace the old items with brand new ones - you can still claim the depreciation on those items.
And if there is value attached to the existing items you remove, you can claim that as a capital loss.

A small cosmetic renovation, of say $20k-$30k, yields the greatest upswing not only in rental increases but in tax depreciation claims as well.

You could be looking at a deduction somewhere between $7k-$10k in the first year alone!

..............................................

Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent.  Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost. 
The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property
 

Read more Expert Advice articles by Tyron
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 : sunshine , coburg north , north lambton , wiley park , albion

go back