Property Depreciation Schedules - The New reality

Tip #25 – Immediate Tax Write Off

When buying things for an investment property, I always abide by this guiding principle: “A dollar today is worth more than a dollar tomorrow” … so deduct items as quickly as possible. Generally speaking, it pays to have a little bit of tax knowledge, that’s why it’s worth remembering that Individual items under $300 can be written off immediately.

Even if your portion of a more expensive item is under $300, you can still write it off. For instance, say an electric motor to the garage door cost an apartment block $2000. If there are 50 units in the block, your portion is $40.

You can claim that $40 outright – as your portion is under $300.

More importantly – if buying a microwave for your property – buy one for $295 as opposed to $305. By doing this you’ll be able to claim $295 as an immediate tax deduction, opposed to depreciating it at the Prime Cost rate of 10% per annum – where you can only claim around $30 in the first year.

That’s an increase of close to 1000%!!!