How to save tax on residential investment properties<br />
About Us<br />Opteon Victoria is Victoria’s largest independent property valuation and advisory enterprise. <br /> Combini...
The best kept secret that 65% <br />of investors<br />are  unaware of<br />
ATO approved <br />Depreciation Schedules<br />
Why should you be interested?<br /><ul><li>They will reduce your clients’ tax    bills.
Your knowledge will impress   your clients.
Your clients will love you.
Value add to your own client services</li></li></ul><li>Who should have a depreciation schedule?<br />Everyone who owns an...
What are they?<br />A tax deduction for the ageing of the buildings and external improvements.<br />A tax deduction for th...
Relevant Dates- Residential<br /> Buildings after July 1985<br />	External work after  Feb 1992<br />   Chattels -  a chan...
What is assessed?<br />The buildings – dwelling, garage, carport, sheds, etc<br />Other fixed structures – paving, fencing...
Two types of depreciation<br />Prime cost method<br />Diminishing value method<br />
Example 1- 2008 Townhouse<br />Construction cost $338,000<br />
The tax deduction<br />The total tax deduction after 5 years<br />$50,986<br />2. 	The total deduction after 10 years<br /...
Annual Tax Allowance- Diminishing Value Method<br />
Example 2- Kavanagh Street, Southbank<br />An average 2 bedroom apartment 70 sqm.<br />Sale price $344,000 April 2007<br /...
The tax deduction<br />The total tax deduction after 5 years         <br />$22,480<br />2. 	The total deduction after 10 y...
Example 3- Bourke Street, Docklands<br />A good 2 bedroom apartment of 69 sqm. Erected 2008<br />Sale price $ 482,000 in M...
The tax deduction<br />The total tax deduction after 5 years         <br /> $36,996<br />2. 	The total deduction after 10 ...
Annual Tax Allowance- Diminishing Value Method<br />
Remember…<br />Pretty much everything except the plants in the yard are included.<br />Every building erected or renovated...
Can claims be back dated?<br />YES<br />Two years within the present tax year or more with a variation.<br />
What are the 3 great benefits for you?<br />These will reduce your client’s tax bill<br />Your knowledge will impress your...
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Depreciation schedules presentation

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Presentation from Opteon Victoria on tax depreciation schedules on investment properties- the benefits, FAQ and further information

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Depreciation schedules presentation

  1. 1. How to save tax on residential investment properties<br />
  2. 2. About Us<br />Opteon Victoria is Victoria’s largest independent property valuation and advisory enterprise. <br /> Combining the resources and expertise of Landlink-Opteon and Market Line-Opteon with a network of 14 offices throughout Victoria, employing approximately 200 professional staff. <br />
  3. 3. The best kept secret that 65% <br />of investors<br />are unaware of<br />
  4. 4. ATO approved <br />Depreciation Schedules<br />
  5. 5. Why should you be interested?<br /><ul><li>They will reduce your clients’ tax bills.
  6. 6. Your knowledge will impress your clients.
  7. 7. Your clients will love you.
  8. 8. Value add to your own client services</li></li></ul><li>Who should have a depreciation schedule?<br />Everyone who owns an<br />INVESTMENT<br />Property!<br />
  9. 9. What are they?<br />A tax deduction for the ageing of the buildings and external improvements.<br />A tax deduction for the ageing of the chattels, plant and equipment.<br />
  10. 10. Relevant Dates- Residential<br /> Buildings after July 1985<br /> External work after Feb 1992<br /> Chattels - a change of ownership<br />
  11. 11. What is assessed?<br />The buildings – dwelling, garage, carport, sheds, etc<br />Other fixed structures – paving, fencing, pools, retaining walls, etc<br />The chattels & plant – carpet, blinds, appliances, etc<br />
  12. 12. Two types of depreciation<br />Prime cost method<br />Diminishing value method<br />
  13. 13. Example 1- 2008 Townhouse<br />Construction cost $338,000<br />
  14. 14. The tax deduction<br />The total tax deduction after 5 years<br />$50,986<br />2. The total deduction after 10 years<br />$95,863<br />
  15. 15. Annual Tax Allowance- Diminishing Value Method<br />
  16. 16. Example 2- Kavanagh Street, Southbank<br />An average 2 bedroom apartment 70 sqm.<br />Sale price $344,000 April 2007<br />Common property includes basement car parking, large foyer area, lift lobbies, a swimming pool, small gym and a paved BBQ area<br />
  17. 17. The tax deduction<br />The total tax deduction after 5 years <br />$22,480<br />2. The total deduction after 10 years<br />$40,625<br />
  18. 18. Example 3- Bourke Street, Docklands<br />A good 2 bedroom apartment of 69 sqm. Erected 2008<br />Sale price $ 482,000 in March 2009<br />Common property includes basement car parking, lift lobbies, and small paved terrace<br />
  19. 19. The tax deduction<br />The total tax deduction after 5 years <br /> $36,996<br />2. The total deduction after 10 years<br />$62,159<br />
  20. 20. Annual Tax Allowance- Diminishing Value Method<br />
  21. 21. Remember…<br />Pretty much everything except the plants in the yard are included.<br />Every building erected or renovated after 1985 is eligible.<br />Chattels are revalued every time the property is sold.<br />We provide the two types of depreciation.<br />
  22. 22. Can claims be back dated?<br />YES<br />Two years within the present tax year or more with a variation.<br />
  23. 23. What are the 3 great benefits for you?<br />These will reduce your client’s tax bill<br />Your knowledge will impress your clients<br />Your clients will love you.<br />
  24. 24. The cost of this investment? <br />Residential fee is $550 incl GST <br />Fully tax deductable and lasts for 20 years<br />Apartments with substantial common property <br />an extra $100 + GST<br />If fully furnished - an extra $100 + GST<br />Commercial/ Industrial properties - quote<br />
  25. 25. 222a / 757 Bourke St, Docklands.<br />Stuart Bridgman <br />Director – Property Services<br />Geoff Pinney<br />Depreciations Coordinator <br />Ph: 1300 786 022<br />Fax: 03 5223 2309<br />E-mail: depreciation @ opteonvictoria.com.au<br />

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