One of the tax perks that comes with owning an investment property is being able to claim depreciation. It’s essentially a deduction related to the wear and tear of an investment property. Being able to claim depreciation on your investment property is great largely because you don’t actually have to spend the cash to get the benefit – the deductions are built into the purchase price of the property.

The amount you can claim will vary based on the specific property you have purchased and when it was built. The newer the property the larger the deduction is likely to be.

To be sure you’re maximising this deduction, it’s worth having a depreciation schedule drawn up by a quantity surveyor. This may cost you up to $800 but it’s tax-deductible, and it could make a significant difference to the value of your annual tax savings.

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Effie Zahos

Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.

The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.

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