Disclaimer: This blog is intended as a general guide and may not cover all specific situations or reflect the latest legislative changes. For personalised advice tailored to your unique circumstances, consult a qualified tax professional.
Are You Missing Out on Tax Savings for Your Rental Property?
Many landlords overlook depreciation on chattels such as carpets, blinds, and appliances due to inaccurate valuations. This can lead to missed tax savings.
Why Depreciation Matters
When you buy a rental property, you’re purchasing more than just land and a building. Chattels like carpets, heat pumps, and light fittings lose value over time and can be depreciated, reducing your taxable income.
For landlords earning over $53,000, any additional earnings are taxed at 30% or more. Every $1 deduction, such as depreciation, saves at least $0.30 in tax.
Maximising Chattel Deductions
Ensuring chattels are correctly valued and classified is key to maximising depreciation claims. While some landlords estimate values themselves, an independent valuation provides an accurate breakdown, helping you claim everything you’re entitled to while staying compliant with IRD rules.
A specialist valuer can assess your property’s chattels and fitout, offering a detailed report that separates chattels from the building structure. Valuit specialises in this area, ensuring you don’t miss out on deductions. Plus, the cost of a professional valuation is itself tax-deductible, further reducing your taxable income.
With an accurate valuation, you can claim depreciation on everything from carpets to heat pumps while ensuring compliance with IRD requirements.