In this month’s QS Corner we explore overseas property depreciation.
More and more Australians are investing in property overseas at the moment. But can you still claim depreciation?
With Australian properties you’re entitled to claim 2.5% of the original construction costs per annum, as long as the property was built after September 1987.
The rate for overseas properties is the same – but the date is different. Construction of an overseas property must have commenced after August 1990 in order to claim the building allowance.
Internal items like carpets, ovens, lights and blinds can also be depreciated, as you would do with an Australian property.
Like any property investing, you’ll need to do your homework, research the local market, find out about rental yields and occupancy rates. But the best thing is – this can all be done online these days.
The main barrier to depreciating an overseas property is working out the constructions costs, along with the expense of flying a quantity surveyor overseas.
Washington Brown has a number of affiliations around the world. We have serviced such countries as New Zealand, USA, Asia, UK & Europe.
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.