For more than decade, my efforts have been focused on connecting with a wide range of investors. I've shared insights through various media outlets and spoken at numerous property conferences, emphasising to investors how they might be unintentionally overlooking substantial financial gains within their investment properties.

A prevailing lack of awareness regarding tax depreciation schedules is a key factor leading many property owners to miss out on potential savings for their investments. While several reasons contribute to this, two significant ones stand out:

• Confusion often arises around the age of the property, and,
• Recent legislative changes in property tax, particularly the introduction of the grandfather clause, add another layer of complexity.

The legislation in question has a grandfather clause, signifying that individuals who entered into contracts before 7:30 pm on May 9, 2017, will remain unaffected. Nevertheless, those who finalised contracts for second-hand residential properties after this time will no longer qualify for depreciation deductions on previously utilised plant and equipment. This has led to a considerable number of property owners and investors in Australia missing out on potential tax deductions amounting to thousands of dollars.

Regardless of the new tax laws; there are still numerous opportunities persist for claiming tax depreciation on investment properties.

Deductions for plant and equipment (division 40) in new houses remain available, and the same applies to properties that have undergone substantial renovations by the previous owner.

Assets like plant and equipment, installed and paid for by the property owner, continue to be eligible for tax depreciation. Additionally, deductions for plant and equipment can still be claimed in various situations, including:

• Properties held by corporate tax entities,
• Deductions occurring during the course of business activities,
• Deductions for properties held by public unit trusts and managed investment trusts.

All property investors retain the ability to claim depreciation for qualifying capital works (division 43). This encompasses the building's structure and permanently fixed assets such as building fabric, roof, doors, tiles, and toilets. These deductions typically constitute 85% - 90% percent of the total depreciation claim.

Securing depreciation on a residential property is a pivotal achievement in the journey of an investor. Yet, those new to property investment often fail to recognise some fundamental aspects of depreciation. Among the commonly overlooked items that property investors can claim are:

• Council costs,
• Builder's profit,
• Design and professional fees.

If your still not clear about how these alterations might affect your situation?

It's crucial for property investors to consistently seek professional advice regarding eligible claims, guaranteeing they don't overlook valuable deductions or make costly mistakes.

For more details on how these renovation or additional works could influence your circumstances and how easily you can maximise returns from your investment property, get in touch with the knowledgeable team at Quantum QS by calling 1300 300 325. Alternatively, you can visit the Quantum QS website to request a quote (www.quantumqs.com.au).