Tax Depreciation for .. Investment Properties
Property investment owners are entitled to capital write down on their investment property according to relevant ATO tax legislation. Investment properties have two main components which are depreciable:
1. Fixtures and Fittings
(Assets decline in value Div 40) –All properties are eligible for depreciation of fixtures and fittings due to declining value of these assets. regardless of the age of the building...
2. Construction Costs
(Capital Works deduction Div 43) – Properties constructed after: –17 July1985 (residential); and –20 July 1982 (non-residential) Are eligible for depreciation of the construction costs.
Construction Allowance Under DIV 43
Items Depreciable @ 4%* or 2.5%* for residential properties include. Building Structure and Footings
. Plumbing and Drainage
. Electrical work including Switch Boards
. Ceramic Floor Tiles
. Internal and External Windows and Doors
. Built in kitchen Cupboards
. Bathroom and Sanitary Fixtures
. Concrete Swimming Pools and fixed Spas
. Concrete driveway or Paving
. Permanent Garden Sheds
. Fencing and Gates
. Builder’s establishment costs
. Architects and Consultants fees
. Additions or extensions
. Refurbishment to internal structure
e.g. new bathroom or new kitchen
Fixtures and Fittings Depreciable include: (Div 40) at various rates* according to ATO effective life .. . Air-conditioners – split and wall units
. Blinds and Curtains e.g. Venetian
. Carpet, vinyl and floating timber flooring
. Ceiling Fans
. Furniture e.g. beds, lounges, chairs, tables etc.
. Hot water System
. Intercom Panels
. Light fittings (excluding hardwired)
. Range Hoods
. Roller Door Motors
. Stoves, cook tops and ovens
. Security System Panels
. Swimming Pool Pumps and Chlorination Systems . . T V Aerials amplifiers and Modulators ............... . Washing Machines
For full list of decline in value deduction (div 40) effective life (years) and Capital works deduction (Div 43)(CLICK ) Rental Properties 2013-14 (NAT 1729)
Note: You should consult with an appropriate tax advisor before relying on any contents or information provided on the BDSA Web Site.
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