John Sage | Developer

What are depreciation benefits for investors?

The most notable gain of property investment depreciation to you as an investor is its ability to assist in saving significantly on your upcoming (and later) income tax returns.

Like a rental property owner, here are just a few reasons that John Sage notes as to why you should use a depreciation schedule:

  1. You can decrease your taxable income by doing the following: Property investment depreciation means deducting the wear and tear and loss in value of the rental property from your taxes. With a suitable schedule, you can lower the tax you must pay.
  2. You can claim legitimate tax deductions for the investment property: the only legal option to claim the loss in value of the rental property’s structure is to use a depreciation schedule, which allows you to maximize your potential savings while protecting your rental returns.
  3. You can pay less tax even if the property has been refurbished: By working with such a quantity surveyor, one can maximize your possible tax savings from property investment depreciation (even though the previous owner has restored the property).