_{1.00 – Dave kicks off the episode, but before the Trio chat about depreciation, Dave puts a special call out to our listeners.}

_{5.50 – Can you backdate a depreciation claim?}

_{13.16 – Mike explains how depreciation is considered for Self Managed Superannuation Fund purchases}

_{14.55 – The inverse relationship between capital growth and depreciation}

_{19.07 – Next week’s teaser: It’s a thriller… regional investing}

_{30.15 – Repairs vs deductions}

_{34.39 – Gold Nuggets}

Today’s episode is all about depreciation; Mike’s wheelhouse!

Dave opens the conversation with a question for Mike, “How often should I update or review my depreciation schedule to maximise my tax benefits?”

Reports last an owner as long as they hold the property. Mike delves into the role of the quantity surveyor when it comes to estimating construction costs.

One of Cate’s investing mistakes gets aired; after having completed a significant renovation on an investment property, Cate overlooked the chance to arrange a depreciation schedule at the onset. Mike unlocks the magnitude of unclaimed deductions in our nation.

How easy is it to arrange a depreciation schedule, and what documentation is required?

And how do self managed superannuation fund property assets differ when it comes to deprecation?

Mike explains the challenges of high depreciation versus high capital growth. He is often asked the question by investors, and his Southbank high-rise, one bedroom apartment example illustrates the inverse relationship between the two measures.

If a property is over forty years old, is there any point looking at arranging a depreciation report? Tune in to hear the answer!

Mike explains the importance of physical inspections when a tax depreciation specialist is formulating the depreciation schedule, and he also sheds light on the circumstances that allow for a physical inspection not to be conducted. Mike’s service station story is a warning to investors who engage professionals who cut corners.

What is the difference between a repair you claim through your accountant and a depreciable item on your schedule? Mike shares the nuts and bolts for our listeners.

.…. and our gold nuggets!

Cate Bakos’s gold nugget: Well-meaning advice from accountants to maximise tax deductions isn’t always great property advice. If in doubt, get a second opinion.

Mike Mortlock’s gold nugget: Don’t assume that it’s not worth getting a depreciation schedule. Always check!

Resources:

If you’ve enjoyed this show, you may enjoy these episodes:

Related eps: 

Ep. 55 – All things property tax – how to understand your deductions at tax time

Ep. 87 – Optimising tax deductions– top mortgage and loan strategy tips

Ep. 108 – Understanding my land tax – Cash flow and diversification overview

Ep. 250 – Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

Ep. 265 – Tax Time Tips for Property Investors – Avoiding ATO Scrutiny, Optimising Deductions, Repairs, and Depreciation

Further resources:

Free Depreciation Assessment