Many investors aren’t aware that a bit of wear and tear on their property isn’t necessarily a bad thing. In fact, it can be an opportunity to pick up a tax deduction for depreciation.

“Property investors are entitled to claim depreciation in their tax returns. Depreciation of fixtures and fittings along with building depreciation can save many investors thousands in taxation,” said Brett White of RE/MAX Extreme.

Depreciation refers to the aging of your building and its fixtures and fittings. The appreciating value of property is the land content, the building itself depreciates, not dissimilar to a motor vehicle.

“Investors are advised to use the services of a licensed quantity surveyor to ensure maximum depreciation.” said Brett.

The ATO require accurate assessment of property depreciation and the best way is to obtain a source document from a quantity surveyor. A quantity survey will allocate value to your building and fixtures and fittings from which you can claim your depreciation.