Tax Q&A: Questions on Unclaimed Depreciation on Property, Answered.
Q: I own a three-bedroom townhouse that I bought three years ago for $434,000.
I never bothered getting a depreciation schedule as the place was 17 years old, and I was always under the impression that depreciation was only for new homes. However, I recently read in this magazine that older homes can attract good depreciation benefi ts as well.
What kind of depreciation schedule would I be able to get on this type of property, and can I go back and make claims on my previous tax returns? It’s a two-storey townhouse, with three bedrooms, and there is airconditioning in the main areas and living room, with a pool in the complex.
Thanks, Drew.
A: Property tax depreciation allowances or ‘capital allowances’ are calculated based upon two different sections of income tax legislation and consider two different aspects of your asset. The two main areas to property tax deductions are: Plant & Equipment; and the Capital Works deductions.
Plant & Equipment (also known as Division 40) are items that are usually fixtures and fi ttings, which can be easily removed from the property, as opposed to items that are permanently fixed to the structure of the building.
Plant and equipment items include, but are not limited to: hot water systems, carpets, blinds, ovens, cooktops, range hoods, freestanding furniture, air-conditioning systems, BBQs, heaters and flooring (floating floor boards).
Yesterday marked the first of 3 of the 2017 PCA NSW Capital Markets breakfast seminars.
Napier & Blakeley have been the main sponsor of these breakfast seminars since 2008 and the 2017 series got off to a flying start with around 150 in attendance in the ballroom at The Establishment.
The series was introduced by Alexandra Gray from Mirvac and Peter Osborn from Napier & Blakeley and the topic of the day was “Australian Capital Market Flows – Both Sides of the Ledger” and the panel speakers were:
And the moderator was Ticky Fullerton from Sky Business News.