We asked some quantity surveyors we know, what they consider the most effective strategies investors can use, to use depreciation to minimise tax on renovations to their investment property.
Here is what they told us:
· All kitchen appliances are considered plant and
equipment by the ATO, therefore kitchen renovations attract higher depreciation
· Carpet and floating timber are also defined as
plant by the ATO, who define them as having a 10 to 15 year effective life ( as
opposed to concrete and tiles, that have 40 years). Carpet depreciates by 20%
per year and floating timber at 13.3%
· Small scale plant items with a value of $301,
offer an instant tax deduction ie ceiling fans etc
· External fridges and barbecues for an outdoor
area can also significantly maximise tax rebates
· Window coverings help with temperature control
and filtering light and are also a terrific tax deduction.
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Wednesday, 3 July 2019