Tax Depreciation Schedules Split 50:50 Increase Joint Owner Deductions
One of the lesser known benefits of being a joint owner of an investment property is that the depreciation claims can be higher overall when split between two or more owners. Splitting a Tax Depreciation Schedule between joint investment property owners will optimise deductions for plant and equipment if done as we do with our Quantity Surveyor Reports.
Tax Depreciation on plant and equipment allows for eligible division 40 items with a value of $1,000 or less to be added to a low value pool and depreciated at 18% in the first year and 37% thereafter. Additionally for residential properties items of $300 or less can be deducted at 100% in the first year.
So the advantage of splitting 50:50 between joint owners is that plant and equipment with original values of $2,000 or less can effectively be added to the low value pool and those of $600 or less can be deducted at 100%.
This is just another example of how we ensure that our property investor clients get the best possible tax deductions from our Quantity Surveyor Reports and achieve better cash flow.
Contact us today at Abbcon Associates and let us help you achieve the maximum return on your investment property.