What is tax depreciation? If you are investing in rental property, it is indeed an excellent financial move. You can build a steady source of income if you are a novice in investing in rental property and at the same time you can build equity.
You can also get tax benefits: From any rental income you earn you can lessen your rental expenses so that you can lower your tax liability.
There are many rental-property expenses –mortgage, property taxes, repair and maintenance expenses, home/office expenses all of which are linked with management.
What is property depreciation?
You can come across two different kinds of allowances available:
- Depreciation on Building Allowance.
- Depreciation on Plant and Equipment;
In what ways will a depreciation schedule help me and how this is useful for the investors?
Simple. The Property Depreciation Schedules will help you pay less tax.
When you claim allowances on depreciation when you invest on property, it enhances the value by proving the investors much greater returns on their investment.
Depreciation allowances if taken in tandem with extra negative factors like that of repairs and maintenance and interest on a mortgage can help the investors in paying less tax and improve cash flow.
The savings made with the help of Property Depreciation Schedules can then be redirected to other areas for debt reduction.
You will be able to achieve maximum tax benefits from your investment which you had made via your investment on property with help from Washington Brown as an investor.
Those of you who have a property which is being used by you, or for more information on how property depreciation can reduce your tax or if you would like to use as depreciation for tax then please visit this link www.washingtonbrown.com.au/property-depreciation-schedules