Tax depreciation reduces your taxable income by allowing you to claim deductions for the wear and tear of eligible building components and assets within your Sunshine Coast investment property. Because depreciation is a non-cash deduction, it can reduce the amount of tax payable each financial year without requiring additional spending.
For plant and equipment assets, deductions may be calculated using either the prime cost or diminishing value method, depending on your tax strategy and advice from your tax professional.
Given ongoing legislative changes affecting depreciation rules, a professionally prepared schedule helps ensure all eligible deductions are identified correctly and applied in line with current Australian Taxation Office requirements.