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A property investor who has saved $50,000 annually on tax has urged other investors in Western Australia to make the most of tax depreciation benefits.
Garth Davis, branch manager of The Property Club in Western Australia, has significantly reduced his tax bill by obtaining tax depreciation reports on all 11 of his investment properties.
“When I bought my investment properties, I employed DEPPRO tax depreciation specialists to undertake a tax depreciation report for each property. The cost was around $600 for each report, which is fully tax deductable," he said.
“As a result of obtaining this tax depreciation report, I receive tax credits in excess of $50,000 each year.
“These tax credits were instrumental in enabling me to build a very successful property portfolio and I encourage all property owners in Western Australia to have tax depreciation reports undertaken for their properties.”
Paul Bennion, managing director of DEPPRO added that it was never too late to undertake a tax depreciation report for an investment property.
“Investors can put in an adjusted tax return after obtaining a tax depreciation report, which could result in huge savings on their tax bill over many years," he explained.
“DEPPRO finds that June and July are traditionally the peak months for activity by property investors throughout the year, according to lending figures.
“However, while June and July are the most active months of the year for property investors, many fail to take advantage of the substantial tax benefits obtained through a tax depreciation report."
Depreciation is defined as the decline in the value of an asset.