Six Essential Questions Property Investors Should Ask This Tax Time with ATDS
With tax season around the corner, ensuring you’re fully optimizing your investment property’s potential can save you thousands. Here are six critical questions to help you make the most of your property with the help of Australian Tax Depreciation Services (ATDS).
1. What Tax Deductions Can I Claim as a Property Investor?
Property investors can claim a range of tax deductions that lower taxable income, making property ownership more financially sustainable—even for negatively geared properties.
Common deductions include:
- Council rates
- Mortgage interest
- Property management fees
- Land taxes
- Strata fees
- Maintenance costs
- Insurance
- Accounting fees
- Depreciation
Of these, depreciation is the most overlooked. Since it’s a non-cash deduction, you don’t need to spend money to claim it. Despite its simplicity, research shows nearly 80% of investors miss out on depreciation deductions.
On average, property investors can claim $9,000–$15,000 in depreciation during the first financial year alone. ATDS ensures you never miss out by preparing a comprehensive, ATO-compliant tax depreciation schedule. Our reports last up to 40 years, and the preparation fee is 100% tax-deductible.
2. I’ve Just Bought an Investment Property – Can I Claim This Year?
Yes! Even if you’ve owned the property for only a few months, you can still claim partial-year depreciation.
The Australian Taxation Office (ATO) allows deductions for the days the property was available for rent. Whether you purchased a property late in the year or rented it part-time as a holiday home, ATDS can help calculate and maximize your partial-year claim.
3. Should I Update My Tax Depreciation Schedule?
If you’ve made renovations or improvements to your property in the past financial year, updating your tax depreciation schedule is essential.
There’s a distinction between repairs and capital works improvements:
- Repairs (e.g., fixing damage) can be claimed in full within the financial year.
- Improvements (e.g., upgrading or adding new features) must be depreciated over time.
An updated schedule captures new plant and equipment or capital works expenditures, ensuring your deductions are accurate and complete.
4. Am I Maximizing My Property Deductions?
Claiming deductions is one thing—maximizing them is another. ATDS’s depreciation specialists use advanced methods like:
- Low-value pooling: Accelerates claims for low-cost assets.
- Scrapping: Allows deductions for assets disposed of during renovations.
- Split reporting: Optimizes claims for properties with multiple owners.
With ATDS, you can rest assured that every eligible deduction is captured to maximize your return.
5. Can My Accountant Handle Depreciation Claims?
While your accountant is crucial for filing your tax return, only a qualified Quantity Surveyor can prepare an ATO-compliant tax depreciation schedule.
ATDS’s specialists are fully recognized by the ATO for their expertise in construction cost estimation and tax depreciation. Once your schedule is complete, your accountant can easily integrate the deductions into your tax return.
6. I’ve Missed Depreciation in Previous Years – What Can I Do?
If you’ve overlooked depreciation deductions in the past, all is not lost. The ATO allows adjustments for tax returns up to two years after submission.
ATDS can help you tailor a depreciation schedule to recoup missed claims, ensuring you get the full benefit for eligible years. For older properties, we’ll identify all opportunities to recover your missed deductions.
Start Maximizing Your Returns with ATDS
Don’t let unclaimed deductions cost you money. ATDS specializes in crafting detailed, ATO-compliant depreciation schedules to help property investors like you unlock significant tax savings.
Ready to maximize your investment potential? Contact ATDS today to request a quote or speak to our experts. Your savings are just a call away!