October 31 tax return deadline looms for property investors

Property investors who manage their own tax affairs have less than a week to submit their tax returns and accompanying property depreciation schedules.

The ATO deadline for taxpayers who file their own returns is October 31.

Under Australian tax rules investors can also claim the depreciation of their investment properties against their taxable income

According to quantity surveyor Washington Brown, there are two types of allowances available: depreciation on plant and equipment, and depreciation on building allowance.

“Plant and equipment refers to items within the building like ovens, dishwashers, carpet and blinds while building allowance refers to construction costs of the building itself, such as concrete and brickwork,” the firm explains.

“Both these costs can be offset against your assessable income.”

Depreciation can be claimed even if a property has been renovated.

Depreciation schedules can only be completed by a qualified quantity surveyor.

Tax returns can also be amended up to two years back to claim for property depreciation over these periods.

As there are some exceptions, property investors are advised to seek clarification from their tax agent or the ATO.

For more on property depreciation read Property Depreciation 101 prepared by Tyron Hyde, director at Washington Brown.