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.
BMT has created a list of assets that property investors commonly overlook when claiming depreciation, including garden sheds, exhaust fans, garden watering systems, garbage bins, intercom systems, door closers, and shower curtains.
Property investors who attempt to self-assess their depreciation claims this tax period instead of relying on an expert quantity surveyor may be placing themselves at risk of missing out on thousands of dollars in legitimate tax savings, says Bradley Beer of BMT Tax Depreciation.
Changes to depreciation law announced in the 2017 Federal Budget are now in force, even though limited detail is available and what we have been told is open to widely varying interpretation.
