Wood Property
Tax time for apartment investment

Tax time for apartment investment.

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When we are approaching June 30 each year it is a good time for investment apartment owners to get everything in place to claim all the tax deductions available for your apartment.  Some owners may have experienced a drop in revenue during the 12 months to 30 June, so maximising the deductible expenses is important.

If you are getting repairs done on your apartment, make sure the bills are in and paid prior to June 30. Also if you don’t have a depreciation schedule in place that enables tax deductions, now is the time to get one. If you’re not across the detail of a depreciation schedule and how it enables tax deductions, you can read up on it here.

Not all apartments will have eligible deductions so to find the specific answers for you and your apartment, Wood Property have teamed up with MCG Quantity Surveyors (MCGQS) to help you.

As a quick reference, MCGQS have advised if you tick one or more of these boxes you should have a depreciation schedule in place.

  • You purchased or built new
  • It was constructed after 16/9/1987 or
  • Had a renovation by you or the previous owner of over $40,000

You can read more about the Three Key Triggers for a depreciation schedule here.

If you do have eligible deductions and need a depreciation schedule prepared, we have negotiated a reduced rate for you of $600 (plus GST). Importantly MCGQS won’t complete a schedule if the initial fact find suggests there is not sufficient deductions, so you can check in with them with confidence of not incurring unnecessary cost. And remember you can use the schedule for many years as it maps out the annual deductions for you into the future.

To streamline the process Wood Property and MCG have set up an online application page for our clients here.

Check in with your accountant for any other details, as there are other factors to consider like the holding entity of your apartment, your marginal tax rate and level of gearing to taxable income.

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Written by a 4th generation real estate agent Apartments Made Easy gives you the tools and tells you all you need to know about how to buy, sell, own, lease, and manage your apartment successfully.

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