Contact Us

One thing that remains constant is the tax deductions rental properties provide to their investor owners. An added benefit is the lucrative common property depreciation deductions strata investors can claim.

What is common property?

When you own a property that’s part of a strata title, such as a townhouse or unit development, paying strata fees is part of the parcel.

These fees cover a range of things depending on the building. This can include insurances, maintenance, council rates and shared facilities maintained and funded by the body corporate. As an investor, you can claim the strata fees as a tax deduction.

Another factor to consider is the depreciation you can claim. Not only can you claim depreciation for the actual property you own, but you are also eligible to claim a partial deduction on the common property assets. These are your common property deductions. Some key examples include:

  • elevators
  • gym equipment
  • fire safety equipment
  • security cameras
  • common area flooring (e.g. hallway carpet)
  • garage doors.

How does common property depreciation work?

Common depreciation deductions are available on a pro-rata basis. They are established from the ownership percentage you have of the strata.

For example, if your ownership percentage is deemed as 10 per cent and the elevator holds a depreciable value of $12,000 the value your depreciation deductions would be based off is $1,200 (10 per cent of $12,000).

How to claim common property deductions

The most accurate way to claim common property depreciation is with a tax depreciation schedule prepared by a specialist quantity surveyor.

A BMT Tax Depreciation schedule includes pro-rata calculations that your accountant will use to determine your common property deductions each financial year.

To learn more about BMT and the additional services that they offer, call their team on 1300 728 726 or Request a Quote.

BMT Tax Depreciation is Australia’s leading supplier of residential and commercial tax depreciation schedules.

Bradley Beer
(B. Con. Mgt, AAIQS, MRICS, AVAA) Chief Executive Officer of BMT Tax Depreciation.

Date published 29 Jan 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Resources

Other pages within this section:

Previous Next

Sign up for our newsletter

Receive important tax news suitable for business owners and self-employed professionals.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with over 2,500 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

03 8594 1811

Or contact us