Depreciation Of Fixtures & Fittings
One of the advantages of investing in property is tax deductions. Now, we all pay too much tax, so there’s definitely a way that we can save tax through investing in property.
One of those ways is through depreciation. There are two sections to depreciation, and one of those is the fixtures and fittings. So, when we’re looking at investing in property, we can claim deductions against the fixtures and fittings. Now, with regulations changing late 2017, what that means is, that we can really only get these deductions when we’re looking at purchasing a brand new property.
What we can claim against that, the air conditioner, the cook top, oven, blinds, floor coverings, all the way down to the door knobs and light shades. Over the first five years of owning that property, we’re looking at around $4,000 a year in deductions.
What we can do with that, is do what’s called an income tax withholding variation form, to get those deductions back to us, on a weekly basis. For someone in that $37,000 to $87,000 tax bracket, that means $30 a week back in our pocket, to help run our investment property.
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