Non-Cash Deductions

Non-Cash Deductions are deductions such as depreciation that can be used although there has been no cash outlay to create them.

These have been introduced by the Federal Government to help encourage investors to buy property.

It must be remembered though if you are going to claim depreciation and you sell the property at a later date, you will have to pay Capital Gains Tax on the written down value of the investment property.

To be able to claim non-cash deductions or depreciate the property you must enlist the services of a licensed quantity surveyor to produce a depreciation schedule which will need to be given to your accountant at tax time.