We asked some quantity surveyors we know, what they consider, are the most effective strategies to use depreciation, to
minimise tax on renovations to investment properties.
Here is what they told us:
• All kitchen appliances are considered plant and equipment by the ATO, therefore kitchen renovations attract higher depreciation rates
• Carpet and floating timber are also defined as
plant by the ATO, who
define them as having a 10 to
15 year effective life ( as opposed to concrete and tiles, that have 40 years). Carpet depreciates by 20% per year and floating timber at 13.3%
• Small scale plant items with a value of $301+ offer an instant tax deduction ie ceiling fans etc
• External fridges and barbecues for an outdoor area can also significantly
maximise tax rebates
• Window coverings help with temperature control and filtering light and are also a terrific tax deduction.
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Saturday, 26 January 2019