1 In 2 Investment Property Owners Aren't Claiming Thousands In Legitimate Tax Deductions

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4th June 2008, 09:18am - Views: 830


4th June 2008

1 in 2 investment property owners aren’t claiming

thousands in legitimate tax deductions

Investment property owners thinking of selling because of interest rate rises should 

make sure they are claiming all their depreciation tax deductions before deciding, 

says Jodie Eade of tax depreciation specialists TDS.

As the end of the current tax year draws closer a very large number of investment property 

owners will again not be claiming deductions against their tax that could be saving them 

thousands of dollars every year. These deductions cover depreciation costs (which the 

ATO allows for any income generating asset) which, in the case of an investment property, 

include most of the items in a standard rented house or unit. 

Jodie explains: 

“Investment property owners who have been thinking of selling up as interest rates have 

risen should check that they are claiming all their depreciation tax entitlements before they 

make any decision to sell - they may find that once they have taken these into account 

they can afford to keep their investment property. 

Many property owners are simply unaware of the tax deductions they are allowed for 

depreciation associated with their investment property or properties. We would generally 

expect an investment property owner to be able to deduct anything from around $10,500 

for a pre-1985 3 bed house up to $52,000 for an inner city new 2 bed unit over a five year 

period. And the really good news is that you can backdate claims for four years when you 

haven’t claimed legitimate depreciation costs.” 

It is estimated that the ATO currently holds several billion dollars in unclaimed tax rebates, 

and the ATO itself has indicated that 52% of investment property owners don’t claim for

tax depreciation on their properties.

In order to claim for depreciation costs an owner must get a quantity surveyor to  

draw up a tax depreciation schedule for the investment property to submit to the ATO 

along with their tax return. 


About TDS

TDS - Tax Depreciation Specialists -  are a boutique firm of quantity surveyors with thirteen years experience

in property tax depreciation. With offices in Brisbane (head office), Canberra and Newcastle, TDS is owned

and operated by partners Al Spence and Jodie Eade, and provides tax depreciation services for individual

and commercial property owners and developers. The firm is fully ATO and AIQS (Australian Institute of

To arrange an interview with one of the partners at TDS or for any further information 

please contact David Bateson on 07 3901 1055 / 0402 332287

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