Home in WA - All about depreciation allowances
In episode 17 of Home in WA, host Jon Williams sits down with Kristian Jeromson of Asset Reports to discuss how you can claim tax depreciation allowances on your investment property.
Watch Home in WA every weekend on Channel 7, where we take you on tours of some of the most gorgeous properties WA has to offer, and provide property market insights you can use.
Interview with Kristian Jeromson, Principal of Tax Depreciation @ Asset Reports
If you own or are planning to buy an investment property, then one of the things often overlooked is the ability to claim the appropriate tax depreciation allowances on the construction value of the property.
In simple terms, your investment property could actually be worth more than you think. And by taking advantage of the maximum allowed tax benefits, your return on investment could increase.
To find out more about how this works, host Jon Williams caught up with Kristian Jeromson from leading depreciation specialists Asset Reports.
Jon Williams: Kristian, what is a depreciation schedule and how does it work?
Kristian Jeromson: Depreciation is available on pretty much every property, including smaller properties, villas, apartments, high rises and high-spec homes. But it refers to the write-off of the asset, meaning the construction value of the property. So as the property gets older, we put a schedule together which is like a big receipt, and the investor will claim that as a tax deduction each individual financial year.
Jon Williams: And does it only apply to certain types of houses?
Kristian Jeromson: Generally both new and old properties will have some sort of deductions available, the newer ones with obviously higher deductions. With older ones, we generally find that there are renovations they can claim. So depending on the investor's situation, they may be able to claim the renovation, extension or upgrades. Or alternatively, if it’s brand new, they may be able to claim the build and equipment like ovens, air conditioners, carpet, etc.
Understanding all the benefits of owning an investment property is key to maximizing your returns, and a depreciation schedule may become your new best friend. To speak to a qualified Quantity Surveyor about your property, go to assetreports.com.au
Or as always, if you need help with a property, contact one of our expert property partners at theagency.com.au