If you own a property in a personal capacity, you would understand that general and specific repairs and maintenance occur to maintain an investment property.
It is becoming increasingly popular for SMSFs to purchase an investment property and renovate the property to a standard which is ‘Available for Rent’. A property is generally available for rent once the house has running water, working lights, locks on all the doors and is suitable for tenants to live in.
Tax Considerations
Depreciation Consideration
Depreciation is a strategic way for SMSF Trustees to claim depreciation expenses on the SMSF Tax Return. The SMSF can depreciate the property on a straight line method or on a diminishing value method. Rather than depreciating the asset over 40 years, the asset can be depreciated in a more time-effective manner which will the time-value of money and maximise the SMSFs deductions will the Members are in accumulation phase. The Trustees of an SMSF can use the services of BMT Tax Depreciation Quantity Surveyors. For further guidance in relation to exactly what BMT do, please see the button below.
