Ducted air con and solar power best for depreciation

Ducted air con and solar power best for depreciation

Posted on Monday, November 16 2015 at 3:55 PM

Analysis by BMT Tax Depreciation has shown that ducted air conditioners, floating timber floors and solar power systems are the assets that generally have the highest depreciable value for property investors.

“Based
on our experience preparing thousands of property depreciation schedules, we’ve
found that these assets will average a combined depreciable value of
approximately $27,000 in a residential property,” BMT CEO Bradley Beer says.

“In
the first financial year alone, these three items could result in about $3,400
in deductions for the owner.”

While
these assets generally result in the highest depreciation deductions for
property owners, there are other items that BMT finds more frequently.

“The
three depreciable assets we find most often during a site inspection are hot
water systems, split-system air conditioners and bathroom accessories,” Beer
says.

“We
find that these assets have a combined average depreciable value of around
$5,000.

“For
an investor, these three items could result in a first financial year deduction
of $1,100 and a cumulative deduction of around $3,500 over five years.”

There
are also a number of assets investors easily miss and fail to maximise
depreciation deductions for, including smoke alarms, garbage bins and exhaust
fans.

“The
depreciable value of these items will usually total $1,200 and as these smaller
ticket items are often valued less than $300 each, they could also entitle
their owner to claim the full amount as an immediate write-off in the first
financial year,” Beer explains.

“The
deductions for assets found in an investment property add up and it pays for an
investor to understand how depreciation works and which items can be
depreciated.

“When
preparing a depreciation schedule for a property investor, specialist quantity surveyors
will complete a detailed site inspection to ensure no assets are missed,” Beer
adds.  

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