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Tax deductions on rental income

Noel Whittaker | July 1 2009 | The Sydney Morning Herald & The Age (subscribe)

Is getting a depreciation report necessary when lodging tax deducation claim against rental income?

Q.

I read an answer to a question re tax deduction claims against rental income, the answer states "get a depreciation report from a quantity surveyor". Why would that be necessary? Is that in relation to the building or the furniture and fittings?



A.

There are a huge range of tax deductions available when you buy a rental property. These include building allowance in many cases and depreciation on hundred's of items that can even include the motors on your garage doors and the timing devices on gardening water installations. For a once only fee of about $550 tax deductible a quantity surveyor will access the entire property and almost certainly find items that you would never think to include if you were doing it yourself. The schedule prepared also saves considerably in accounting fees.

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