An overview of the tax treatment of rental properties.
“Assets such as the stove and carpets, that are part of the property or used in your rental activity, will eventually reduce in value through wear and tear or by becoming out of date. This reduction in value of your assets is known as depreciation. Each year you calculate the depreciation amount and deduct it as an expense”
For the Property Professional IR260 – Depreciation for businesses
An overview of depreciation and all of the available deprecation rates.
“This publication explains how to claim depreciation on your business assets. You’re required to claim depreciation when you aquire an asset for your business and account for it when you dispose of that asset.”
Click here to download a copy of the interpretation statement “Residential Rental Properties – Depreciation of Items of Depreciable Property”
This document took over 10 years to complete and changed the way we complete depreciation schedules for Residential Property. The positive is that it finally gave us all clarity on what we could claim.