Tax time: Thousands of dollars waiting to be claimed by investors

Property investors can claim additional thousands back in tax without any cash outlay if they buy right!

Australian Taxation Office figures released this week showed that depreciation was the second-highest claim made by property investors.

There are many advantages to buying a brand new investment property.

Here are two of the most significant:

1-Stamp Duty Savings!

When building new, you only pay stamp duty on the land and not the full purchase price.

2-Tax Benefits!

Another advantage of buying a new home is the higher depreciation benefits. The newer the property, the higher the amount of depreciation benefit available to you as an investor.

The full price of the building structure and appliances such as dishwashers, ovens, and other fittings and fixtures are subject to depreciation which can mean substantial tax deductions for investors.

Australian Taxation Office figures released this week showed that depreciation was the second-highest claim made by property investors, averaging $3,885 in the 2018/19 financial year, with the highest claim coming off loan interest (averaging $9,640). Body corporate fees came in third ($2,448), followed by land tax ($1,931) and property agent fees ($1,281).

What property investors claimed 2018/19:

• Loan interest (average $9,640)

• Depreciation (average $3,885)

• Body corporate fees ($2,448)

• Land tax ($1,931)

• Property agent fees ($1,281)

The above info is by no means financial advice, individual results will vary, and always consult a financial advisor.

(Source: ATO/BMT/realestate.com.au)