You can easily claim tax depreciation in Gold Coast on any depreciated property that you might own. It is a very important decision in any investor’s life. Listed below are some ways to take full advantage of depreciation.
• Maximize construction costs
It is necessary to use the original cost of construction when depreciating an investment property. Most people nowadays are buying property at a very low cost i.e. nearer to the original cost of construction. The tip is to buy the property whose current purchasing cost is closer to the original building cost.
For example, if you are a quantity surveyor who has to sell an old property whose original construction cost is 175,000$ and you sell it to an investor for 250,000$ and the current price of the property in the market was 335,000$, then that means the original building cost was the basis of the purchasing price. This deal will benefit the purchaser by making them pay less stamp duty and make more profit if they re-sell it. Their depreciation deductions have also increased compared to the purchase price.
• Old property depreciation
Properties built before 1985 can also be depreciated. The purchase price is inclusive of three factors:
3. Plant and Equipment
A good quantity surveyor in Gold Coast knows how to find enough plant and equipment items to easily depreciate your property and that would be enough reason for you to seek the services of their firm.
• The taller the building, the greater the depreciation
Tall building allows for more plant and equipment. The higher the number of plant and equipment, the higher the allowance and the high allowance thus results in higher depreciation. “Plant and Equipment” basically refers to the services that are on the property as well as the items placed inside the property itself.
Under this category, there are some services that are required when the building height increases e-g lifts. Services like these are very noticeable but there are some services that are less noticeable when the building height increases but are still required e-g fire hose reels and intercoms. All these services are depreciable under the Plant & Equipment category.
• Furnishing the property
Furnishing the property can greatly increase the depreciation deductions because, with more material, there will be higher rates of depreciation. In this way, furniture can greatly increase your claim. For example, if a furniture package supplied by a developer is worth 20,000$ then the deductions on that amount in the first year alone is 10,000$.
• Hire an experienced and skilled quantity surveyor
If you have paid hundreds of thousands of dollars on your new property so do you really think it is wise to save that couple hundred dollars on hiring a quantity surveyor? It is not intelligent to do so because the laws have changed over the years and each property is different in some aspects, so it pays to have an expert on the job. Go for a firm that has been in business for at least 10 years which means that they will have sufficient experience in accurately analyzing your property.