Tax Refund, Second-hand Investment Property

Navigating the complex rules surrounding second-hand depreciating assets for residential rental properties can feel overwhelming. Nevertheless, here’s a guide to help you maximize your tax refund.

To ensure clarity, tax agents and accountants must transparently communicate with clients about the stringent rules established by the ATO regarding claiming depreciable assets for second-hand residential rental properties.

Identifying Second-Hand Depreciating Assets

Second-hand depreciating assets for residential rental properties encompass items previously used or installed and ready for use by clients or another entity.

Understanding Deductible Expenses

Rental properties involve three types of deductible expenses over multiple income years:

  1. Borrowing expenses
  2. Amounts for the decline in the value of depreciating assets (allowed only in certain circumstances)
  3. Capital works deductions

However, sorting out these expenses can be challenging, as some are claimable immediately, while others must be claimed over several years.

Support from Endurego Tax

As the leading CPA accounting firm in Inner West Sydney, Ashfield, Belrose, Northern Beaches, and Adelaide, Endurego Tax ensures to provide clients with the necessary support by meticulously reviewing their files and books. We assist with tax planning and ensure that returns are correctly completed, maximizing allowable rental deductions for clients to optimize their tax refund and their tax position.