Owners of income producing properties are eligible to claim tax deductions for a number of expenses involved in holding a property, according to Bradley Beer, BMT Tax Depreciation.
There are two ways to calculate depreciation on plant and equipment in an investment property - by using the diminishing value method, or the prime cost method.
New depreciation laws came into effect earlier this month, in one of the most dramatic changes to property depreciation legislation in more than 15 years.
Bradley Beer of BMT Tax Depreciation says the benefits from claiming more depreciation could be reduced if they incur penalties from the ATO for failing to lodge their tax return on time.
Changes to legislation were introduced into parliament yesterday, including changes which will negatively affect residential property investors across Australia.
