Recent figures from the Australian Taxation Office (ATO), show that more than 80% of property investors are not claiming the full deductions available to them.
At a recent Breakfast at BMO, Business Development Officer at BMT Tax Depreciation, Blake Russell told guests that the majority of investors are missing out on thousands of dollars in unclaimed tax entitlements.
“Investors who have used a specialist quantity surveying company have on average claimed nearly $6,000 more than other investors,” Mr Russell said.
Some items investors often miss when claiming depreciation include clotheslines, security systems, garbage bins, hot water systems, smoke alarms and even garden hoses.
“The good news for investors who have missed out on depreciation in past years is that they are permitted to amend the previous two financial years’ claims,” said Mr Russell.
BMO Accountants Partner David Briese said the biggest concern for rental property owners he sees is not maximising deductions or making incorrect claims.
“Property investors need to remember everything from the most basic deductions, to claiming borrowing costs, prepayments, depreciation and apportions for any private use,” Mr Briese told attendees at the breakfast seminar.
Both speakers urged investors who are unsure whether they are claiming the maximum depreciation deductions available to them should talk to their accountant or a professional quantity surveyor.