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5 Not so Obvious Tax Claims for Investment Properties

01 September 2017

BMT Tax Depreciation has compiled a list of five uncommon items that property investors can claim tax deductions for.

1. Bathroom accessories

Bradley Beer, CEO of BMT Tax Depreciation, says that bathroom accessories are modest additions to an investment property that can be easily overlooked, but investors may be able to claim around $125 in deductions for things such as toilet brush holders, shower caddies and soap holders.

“As these assets cost under $300, the ATO allows investors to claim their full value as an immediate deduction in the first full financial year,” Mr Beer says.

2. Holiday rental assets

Investors with holiday rental properties may need to purchase assets so guests are equipped to enjoy their stay, says Mr Beer.

“Such as kitchen cutlery or crockery sets,” he adds.

“If these items cost an investor $285, they can claim their full value in the first financial year of deductions.”

3. Outdoor assets

Many investors think that deductions are only for assets contained inside a property’s structure.

“However, outdoor assets can attract valuable deductions as well,” says Mr Beer.

“Artificial grass or turf matting is considered a removable plant and equipment asset. If an investor outlays $960 to install it, then they may be able to claim a $180 deduction in the first financial year and $841 cumulatively over the first five years.”

4. Home automation systems 

Some investors may upgrade their properties to enhance their market appeal, says Mr Beer, and in doing so add big ticket assets to their property which can attract valuable deductions.

“An investor may be able to claim a first-year deduction of $1,270 for a home automation system that cost $6,350 and $4,269 in cumulative deductions over the first five years.”

5. Green assets

“Some investors may install ‘green’ assets to enhance their property’s energy efficiency, and in doing so, may also save money on energy costs for their tenants,” says Mr Beer.

“If an investor chooses to add a solar-powered generating system that costs $5,250, then they may attract a first-year deduction of $525 and $2,150 in cumulative deductions over the first five years.”

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