It has been found that 80% of property investors failed to take full advantage of tax depreciation, according to a survey conducted by one of the leading Tax Depreciation Specialists. This figure only takes into account the investors whose savings potentially gained from deductions exceeds the cost of ordering the preparation of a tax depreciation schedule.
A common mistake made by most property investors is that they think they are ineligible to claim depreciation, i.e. the property is too old to qualify for such deductions. This is true for residential property where construction commenced prior to 19 July 1985 and for commercial properties’ owners that were built prior to 20 July 1982.
We would like to remind you that the restrictions imposed above does not apply to the depreciation of plant and equipment assets, as the condition for depreciation is not age-related, but more to do with the condition and the quality of the item.