One of the most important sources of income for Sunshine Coast business owners is tax depreciation on the items that they own. If you are a business owner in Australia, then the items you own will depreciate over time which means that you can write that off on your tax returns. The same is true for Kawana property depreciation which means that you can keep more of your money during tax time.
But taking advantage of tax depreciation starts with understanding what it is, how it is applied, and what tax advantages need to be exploited to maximize the money that is kept. A depreciating property asset is units, houses & shops.
All equipment, items, and even the structure of buildings will depreciate over time. In other words, they would sell for less today than they did when first purchased. For business owners and those who control income-producing properties, this means that the lower the current value of the items and building structure that they own, the more it can be deducted from their taxes each year.
You can break down depreciation into two sections, capital works and plant and equipment. Examples of capital works for hotel owners would be the doors, windows, elevators, and walls of their building. Plant and equipment mean fixtures that can be removed from buildings, such as furnishings, hot water systems, carpets, and equipment for bathrooms, kitchens, and the like.
Remember that depreciation applies to all businesses both large and small. Whether you are a one-person company or a corporation that has thousands of employees, the items you own depreciate at the same rate regardless of ownership.
We have a selection of Tax Depreciation Schedule Videos to explain this for you.
Until December 2020, the threshold for asset write-offs is $150,000. Before, the threshold was just $30,000. With many small business owners having balances of all items that qualify together under the new threshold, it means that many of them will be able to write off all their balance.
The result is that they can boost their cash flow by thousands of dollars, possibly tens of thousands depending on how much they own. This represents a huge change for Australian business owners who were operating under the old system.
If your business qualified under the Australian Taxation Office, which means it has a turnover of $10 million or less, then you can place plant and equipment items together. This assumes that they are equal to or above the instant asset write-off condition as established in the tax law. Once they are pooled together, you can enjoy a depreciation rate of 15% the first year. Plus, they depreciate at 30% for following years.
Taking advantage of tax depreciation and Kawana property depreciation along the Sunshine Coast starts by understanding what it is and then how it can be used to help keep more money when filling out your taxes. Consult with a tax expert to see where you can deduct the depreciation of the property and items you own from your business. You may find that you can save many more thousands than you think by pooling all your assets together.
For your questions regarding Tax Depreciation Contact Bobby. Bobby is the authority on the Sunshine Coast.
For Property Depreciation and Tax Allowances on investment properties please complete the information worksheet relevant to your property type. Submit online or print and fax.
Our fees are tax deductible as an expense and a receipt is included with your report.