The end of this financial year is only days away, and that means it is once again time to get your paperwork in order so you can file your taxes. As someone who purchased their first investment property in the past year, you now have something new to include in your tax return. But before you can start, you are going to need an investment property depreciation schedule. What is it?
Investing in property is a wise financial move that can secure your financial future. Various factors come into play when buying or renting property. One of these factors is property depreciation. As property ages, fixtures and assets wear out and decrease in value. The Australian Tax Office (ATO) allows building owners to claim this wear and tear or depreciation as a deduction against their assessable taxable income. However, to have assets written off as a tax deduction, one must prepare and present a tax depreciation schedule.