How to maximise your building allowance on your investment property.
These blogs are a step-by-step guide designed to help you, the property investor, claim the maximum depreciation you are entitled to.
The building allowance relates to the structure of the building, which you can claim at the rate of 2.5% per annum. Though some property types attract a higher rate of depreciation.
What’s the difference between the Building allowance and the capital works allowance?
Nothing actually – it’s just a different terminology meaning the same thing.
The capital works deduction is slightly different, though – it refers to the amount you can actually claim.
As stated before, this is generally 2.5% per annum of the building.
What items does it refer to?
Under this allowance, you can claim the structure of the building. Structural elements include components such as concrete, brickwork or gyprock.
It’s the stuff that is going to last a long time in your property.
This is unlike the plant and equipment in your property – which wears and tears faster and thus has a shorter effective life.
How do I claim it?
You need to order a depreciation schedule from an experienced quantity surveyor in order to claim it.
The fees are tax-deductible and generally most quantity surveyors offer a money back guarantee.
