depreciation Tag

Did you know that you can claim tax deductions for the wear and tear to the fixtures, fittings and appliances in your rental property? Depreciation is one of the many great tax breaks that make property investing affordable for the average person. It refers to the decrease in value of a property or asset – such as the carpet wearing and furniture becoming dated – that occurs over the time you own it. Depreciation rates vary according to the age of the property, with new properties collecting the greatest benefits. As an investor, you can write depreciation off as a tax-deductible expense and in doing so make valuable savings and increase your cash flow. Here’s how: Building Allowance Also known as capital works deductions, these include construction costs, the cost of altering a building and the cost of capital improvements to the surrounding property. As...