Remember To Claim Property Depreciation

July 11, 2011

Many property investors are not aware of the savings that can be made from depreciation on their purchase. Almost all properties depreciate in value in some way.

A qualified quantity surveyor can inspect a property and prepare a depreciation report. The report can then be used as part of a tax return, to claim the depreciation of the investment property against taxable income.

Two types of depreciation can be claimed. Depreciation on Building Allowance refers to actual construction costs, like cement and brickwork. Depreciation on Plant and Equipment includes items inside the building, such as dishwashers, carpets and blinds.

A depreciation report prepared by a quantity surveyor can help property investors pay less tax.