Second-hand depreciating assets for residential rental properties can be confusing and difficult to manage. The ATO recently established stringent rules for claiming depreciable assets. Tax agents and accountants are advised to be upfront with their clients when it comes to second-hand depreciating assets for residential rental properties. Here is a guide for you to maximize tax refund for second-hand investment property.
As the leading CPA accounting firm in inner west Sydney Ashfield Belrose Northern Beaches and Adelaide, we make sure that clients are given the support they need regarding the matter by carefully reviewing their files and books.
Depreciable items that have previously been used or installed and are ready to be used by your clients or another entity are considered second-hand depreciating assets for residential rental properties. Most of the time, they are items that were present when your clients bought the property and/or in their private home, which was later rented out.
Here are three types of expenses that you can deduct for your rental property over several income years: (1) borrowing expenses, (2) amounts for decline in value of depreciating assets (allowed only in certain circumstances), and (3) capital works deductions. Sorting out expenses can also be difficult, as some can be claimed immediately while others must be claimed over a number of years.
Endurego Tax will assist you with your tax planning and will ensure that your returns are correctly completed, maximize your allowable rental deductions, hence you can maximize your tax refund, and your tax position.
