If you own a residential building that commenced construction after September 15, 1987, you’re entitled to capital work deductions at a 2.5% rate for up to 40 years, including potential benefits from a tax depreciation report. But what about older properties? Here’s where a Quantity Surveyor comes in.
Residential buildings predating 1987 may not qualify for building write-offs if they’ve remained untouched. Yet, many older buildings undergo renovations, which can unlock valuable deductions. In some cases, extensive renovations might even classify a property as new.
This capital works improvements breathe new life into plant and equipment assets. Quantity Surveyors assess their future use, leading to revaluation. Should an investor be ineligible to claim Division 40 plant and equipment, a capital loss claim is still possible for asset value decline.
For deeper insights, refer to our previous blog post: “Capital Gains Tax- Capital Loss and Equipment Depreciation Schedules.”
Whether your property is old or new, engaging a Quantity Surveyor to prepare a tax depreciation report is a wise move. While deductions might not be as substantial for older properties, they’re often still worthwhile. Plus, professional fees are fully tax-deductible, making hiring a Quantity Surveyor a logical choice.
Archi-QS specializes in tax depreciation reports. Reach out to us today and discover if your investment property qualifies for a tax depreciation report, potentially yielding unclaimed tax deductions and boosting your cash flow.