P6

Depreciation of Fixtures and Fittings – Flooring (Maximising Your Deductions)

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Tax depreciation is one of the biggest factors when considering an investment property. Let’s look at a smart technique to maximise how much you can get back!

Depreciation of Fixtures and Fittings – Flooring

Fixtures and fittings are a key component to that, but we need to also look at the detail in those fixtures and fittings, to make sure that we’re maximizing deductions out of our investment properties.

For example, if we look at floor coverings. When we put carpet down in a house, we can claim those carpets over a 10 year period. What that’s doing is, it’s maximizing the deductions for us in the first 10 years, meaning we’re paying as little as possible to run the property with those deductions.

Floating timber floors also fit into that category, being able to be claimed over a 15 year period.

But if we’re looking at a home that has tiles. Tiles fit into a different section of depreciation, and they’re claimable over a 40 year period.

So, there’s less deductions each year if we’re looking at tiling a home, as opposed to having carpets and timber floors.

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