Investors are finding out, as we speak, the changes in depreciation deductions which took effect earlier this year. The two key elements of these changes include:
It has been heavily highlighted, but from 9 May 2017, a client who purchases an investment property will not be able to claim tax deductions on plant and equipment that have been installed by the “previous” investor. An investor will only be able to claim on costs for items they incur themselves.
All tax depreciation schedules set prior to May 9, will be grandfathered – meaning pre existing to this date will remain the the same and honoured.
From July 1 2017, taxpayers will no longer be able to claim travel expenses such as their car and flights that relate to inspecting, maintaining or collecting the rent. While we agree this is unfair to those who genuinely need to view their properties in order to make capital improvements of fix issues caused by fair wear and tear over time, we do have a solution for you. If you wish to inspect your property, but cannot be present for the inspection, talk to us about streaming live video of your property to you. There’s plenty of ways we can let you ‘see’ your property.