What property deductions do investors commonly miss?
Quick Answer
Investors often miss deductions for depreciation, capital works, common property, previous owner renovations, new assets and scrapped items. These deductions are not always visible in bank statements or property manager reports, which is why a depreciation review can be valuable.
Commonly missed property deduction areas include:
Division 43 capital works
Renovations completed by previous owners
Common property assets in apartments
New appliances and replacement assets
Carpet, blinds and air conditioning installed after purchase
Commercial fit-out
Tenant-funded works
Scrapped assets removed during renovation
Low-value assets
Capital works on extensions and improvements
Property manager statements usually show income and expenses they manage. They do not usually identify construction costs, depreciation, previous owner works or common property claims.
A tax depreciation schedule helps uncover deductions hidden in the building and assets.