One of our highest tax depreciation returns this year which suburb was it?

Written on the 26 June 2018

One of our highest tax depreciation returns this year which suburb was it?

Here's today's comparison investment property for everyone to give you an idea of what we were able to get this property investor to deduct from tax this year. Have a look at the grand total of tax deduction outlined below.

Last year a report was published by Resolution Research stating this suburb is tipped to become the new CBD of north Brisbane. Its proximity to Brisbane's fastest growing employment, major retail and recreational facilities is driving growth and it currently holds an undersupply of rentals.

Have you guessed it yet? Chermside!

Suburb: Chermside, QLD

Type of Property: 2 bed 2 bath 1 car Unit

Age of Property: 2015

Approx Purchase Price: $485K

Approx 1st year tax deduction: $22,500 Remember you get tax deductions every year, this is just what this family investor will get back in year 1.

Demand for apartments has been largely driven by the Gen Y's that at last census date made up 32% of the suburb's population.

So why did this Chermside tax depreciation schedule come back higher than some of the others? This was a fully furnished, brand new unit. When you put furnishings in your property that are part of the rental, you can claim those in your depreciation report as well.

This investor took the furniture package that came with the purchase of the unit and therefore was able to charge a higher rent for having a furnished apartment and was also able to claim tax deductions on all of the furniture each year.

We have seen cases where a property actually went from being a negatively geared property to a positively geared property because of the tax deductions the investor could claim. Sounds tricky doesn't it, but we will leave that explanation for another blog post.

If you need help with a Chermside tax depreciation report or another investment property, just click on the link below and we will be in touch soon. We are happy to answer any investor questions around tax depreciation and I think you will find us very easy to chat to!

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