But are you one of the many Aussie landlords who are missing out on depreciation benefits?
BMT Tax Depreciation CEO Bradley Beer told news.com.au last year that 70 to 80 per cent of investors failed to maximise their deductions.
While no doubt enjoying the chance to spruik his successful business, he was not so chipper about the fact that depreciation deductions were the most commonly missed claims.
“It’s not something you see,” he said, referring to deductions for fixtures, fittings and building costs.
“People don’t understand it well, that’s why they miss it.”
The best advice? Talk to your accountant and get a depreciation schedule completed. It may cost some cash up front, but it could well pay for itself.
If you haven’t been claiming all your depreciation deductions you can talk to your accountant about amending previous tax returns.
Here are the top depreciation deductions BMT spotted from their 2017-18 claims.
- Airconditioning $924
- Carpet $716
- Floating timber floors $709
- Lifts $490
- Blinds $468
- Ovens $333
- Dishwashers $324