Changes in Second-Hand Asset Depreciation Tax Deductions

Greetings, savvy investors of Inner West Sydney! Did you know that your second-hand assets might be losing value faster than you think? Endurego Tax Accounting Services is here to shed light on crucial updates that affect your depreciation tax deductions!

The Warning: Changes in Depreciation Tax Deductions

If your property isn’t utilized for business or falls outside specific entities, your deduction options are shrinking!

Say goodbye to claiming deductions for second-hand assets in your private residence or non-taxable purposes (unless it’s an occasional maintenance stay)!

Salvage Your Deductions – Here’s How!

But wait! You can still salvage your deductions if:

You’re using the asset for business purposes (yes, including rental properties!)

You fall under corporate tax entities, superannuation plans, public unit trusts, or managed investment trust categories!

Feeling Overwhelmed? There’s Still Hope!

If you purchased your home before 7:30 pm on May 9, 2017!

AND you installed it into your rental property before July 1, 2017!

Marty’s Story: A Real-Life Example

Meet Marty, a homeowner who made a savvy move:

Marty decided to rent out his fully furnished home after living there until June 2017.

Good news for Marty:

  • He rented out his home before July 1, 2017.
  • He bought the property before the magic cutoff date of 7:30 pm on May 9, 2017.

Marty can still claim deductions for the decline in value of those used assets as long as they have an effective life left in them. Score!

But hold your horses, Marty! From the 2017–18 income year onwards, any second-hand assets bought and installed after that crucial May 9, 2017, cutoff time? No deductions for the decline in their value. Tough break!

And if Marty’s property was just chilling vacant until July 2017? No deduction for the decline in the value of those used assets. Bummer!

Timing Is Everything!

Remember, timing is everything when claiming valuable deductions! Marty’s got the right idea, but it pays to stay informed! #TaxTales #SmartInvesting #KnowYourDeductions

Stay ahead of the game, investors! Know your deductions, save your assets, and keep your investments thriving with Endurego Tax Accounting Services! #TaxTips #InvestmentHacks #DeductionsDemystified

Invest wisely, stay informed, and let your assets thrive in Inner West Sydney!