The Block Triple Threat's depreciation tax treat for investors
For the potential buyers of The Block Triple Threat townhouses, the fully-furnished properties with new interiors offer a hidden benefit.
If their purchase is used for investment purposes, the buyer of one apartment could make almost $1.4 million worth of deductions within the course of their ownership.
BMT Tax Depreciation, which assembles the depreciation reports for The Block properties each season, has revealed that investors will be able to claim between $39,986 and $54,163 in depreciation benefits in their first year of ownership.
Tim and Anastasia's renovation at 2/27 Darling Street in South Yarra offers the greatest deductions, with between $44,316 and $54,163 claimable in the first year. In total, their apartment offers a maximum deduction of $1,389,708.
Source: BMT Tax Depreciation
Depreciation, the declining value of a property or its items, can be claimed as a loss in investment properties, and therefore offers a significant tax benefit for investors.
Of all the items in the Block townhouses, it's the pricey designer kitchen appliances that offer the greatest depreciation benefits.
In Tim and Anastasia's triple level unit, for example, there is a total deduction of $19,842 available over five years for their kitchen appliances. In just the first year, investors could make a deduction of $3,445 on kitchen items.
Air conditioning offers the next greatest deduction, with $12,300 available over five years. Televisions and audio-visual equipment, window coverings and gas heating all also provide thousands of dollars in deductions.
The tax deductions peak for each couple's projects in the second year of ownership, with almost $60,000 potentially deductible in Tim and Anastasia's project in the second year.
- Tim and Anastasia's depreciation:
- Josh and Charlotte's depreciation:
- Ayden and Jess's depreciation:
- Darren and Dee's depreciation:
Source: BMT Tax Depreciation
The Block Triple Threat townhouses go to auction on 28 April.