Sydney House Prices
Property and Property Tax Depreciation
Depreciation is not always a dirty word. When it comes to Sydney property and property taxes depreciation can really be beneficial when property taxes are due to be paid. It works much the same way automobile depreciation works; you can claim any normal wear and tear on your vehicle in order to receive monetary reimbursement for loss on the investment. Property depreciation works the same way, only in regard to your property taxes. This claim can be made as it applies to your property taxes; this is referred to as ‘property tax depreciation.
What do you know about property tax depreciation?
If you have a fair amount of experience when it comes to purchasing property you are likely very aware of the details of this form of tax depreciation. Many who have been dealing in real estate for years will take property tax depreciation into consideration when pondering any purchase. This is not something which experienced property investors only should do; this is a wise move for the amateur as well.
There are two types of property tax depreciation; they are as follows:
- Depreciation of Building Allowance
This involves any building construction costs; masonry and concrete work are also included
- Plant and Equipment
This applies to any property contained within any structure including appliances, flooring or carpeting, draperies, and other functional aesthetic necessities
Anytime you attempt to buy a property for the purpose of financial gain it is essential you learn as much as you can about property tax depreciation, as this will be of great financial benefit when it comes to your profit-making efforts. You even have the ability to count anything on or in the property when calculating your property tax depreciation, but only if the property was bought with the intent of making a profit.
The Painful Facts
There are literally countless Sydney property investors out there who have little to no knowledge of how property tax depreciation can benefit their profit-making efforts. The result of this is thousands and thousands of unclaimed tax dollars, which these people are entitled to, just piling up for absolutely no reason.
The truth is all a property investor really needs in order to avoid this issue altogether is skilled, reputable property surveyor to carry out a detailed home inspection. The surveyor will then prepare a professional certified report on your property, any structures on the property, and any items within the structures. You may be very surprised at the significance of the amount of money you save.
You now have a bit of knowledge you perhaps did not have before, and it is highly-valuable knowledge to have. Make it a point to invest in a top-notch, reputable surveyor and see what they have to say. While you may be pleasantly surprised don’t allow yourself to regret any missed funds from years gone by; you never know what the future brings. When it comes to property investments, taxes, and property tax depreciation you need all the muscle you can get. Now you have a good start so hit the ground running!