Taxation For Property Investors

Rental Deductions 2017-18

Depreciation Claims

Due to changes in legislation, property investors may no longer be able to claim depreciation on used and second-hand depreciation assets in residential rental properties. While this has created a restriction on depreciation claims, it will also have the corresponding benefit of paying less capital gains tax when they sell the property.

Those who purchase brand new property will continue with the existing depreciation regime where these changes will not affect them. In addition, these proposed changes will only impact residential property. Commercial, industrial, retail and other non-residential properties will also not be affected.

Building allowance and claims on the structure of the properties remains unchanged. Investors will still need to obtain a depreciation schedule to calculate the deductions.

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