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NBtax Tax Bites

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Dazzling Views Deliver High Depreciation Rewards

From the expansive balcony, this property provides dazzling 360° views from the ocean to the Gold Coast hinterland. For our clients, the tax depreciation benefits in the Capital works on the building are equally dazzling.

Over the next 40 years, our investor client can recoup the cost of additional Capital works and the building through depreciation allowances, totaling $517, 184. This will greatly help to offset rental income and manage cash flow. 

The luxury three bedroom apartment includes direct lift access to a private foyer, and a enclosed basement with three car garage and storage cage, plus resort style facilities including 25m lap pool, gymnasium, residents lounge, tennis court, BBQ pavilion, sauna, spa, and steam room.    

In the first full financial year alone, our clients can claim $21,656 in depreciation deductions on Divisions 43. As the property was purchased after the 9th May 2017, as an existing or second property, our client can’t claim depreciation on the Plant & Equipment assets (Division 40). In the future, should they do any upgrades to the property with new furnishings or white goods, they will be able to claim depreciation on these items. 

Depending on the value of the building and when it was constructed, depreciation allowances on second hand property are still worth claiming. 

To find out more about the legislative changes impacting the sale of second properties visit Legislation Changes.