Forums / Property Investing / Overseas Deals / Did you know that you can claim depreciation on your overseas property?

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  • Profile photo of AnthonyBAnthonyB
    Participant
    @anthonyb
    Join Date: 2012
    Post Count: 18

    Hi All,

    Did you know that as an Australian property investor with properties abroad you could be missing out on thousands of dollars each financial year?
    If you are declaring the rental income from your overseas property here in Australia then you are entitled to claim depreciation. Currently, 80% of Australian investors don't claim any or enough depreciation on their own Australian-based investments let alone properties abroad. Many investment property owners are losing tax credits by failing to take full advantage of their overseas property's tax depreciation potential.

    What is Tax Depreciation?
    As a building gets older, items wear out – they depreciate. The Australian Taxation Office (ATO) allows property owners to claim a deduction related to the building and fixtues & fittings contained within it. Property tax depreciation is available to any Australian property owner who obtains assessable income by way of rent, anywhere in the world.

    Depreciation Fact:
    – Investors can claim depreciation on any new or old investment property.
    – You can adjust previous tax returns by up to 2 years to recoup missed deductions.

    Profile photo of casperamcasperam
    Participant
    @casperam
    Join Date: 2012
    Post Count: 4

    Can us citizens claim depreciation on their own IP’s.

    If they can cant who do we get to compile a depreciation report

    Profile photo of AnthonyBAnthonyB
    Participant
    @anthonyb
    Join Date: 2012
    Post Count: 18

    Hi Casperam,

    Yes, as a US citizen you are able to claim depreciation on your own IP's.

    Have a look at the IRS website for more details:

    http://www.irs.gov/publications/p527/ch02.html direct link to information on the IRS website.

    I hope this helps,

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    hey Anthony B,

    Thanks for the tip. I guess sometimes property investors in Australia seem to get confused or overlook the fact of certain tax advantages and strategies they have with their overseas properties.

    Profile photo of DHCPDHCP
    Member
    @dhcp
    Join Date: 2010
    Post Count: 190

    Simply talk to your tax accoutant and you'll get all your answers about Depr.

    Profile photo of casperamcasperam
    Participant
    @casperam
    Join Date: 2012
    Post Count: 4

    Hi Guys

    A bit late in getting back to this one

    Can anybody offer recommendations for compiling Depreciation reports in Atlanta GA and the probable costs incurred

    Profile photo of MenunesMenunes
    Member
    @menunes
    Join Date: 2012
    Post Count: 28

    We have a property in Portugal we are about to start renting out. Previously it has just been our private house for when we visit family.
    To now turn it into a claimable investment, will it just be a matter of claiming income & expense, or is there some other notification we need to do?

    Profile photo of washingtonbrownwashingtonbrown
    Member
    @washingtonbrown
    Join Date: 2006
    Post Count: 44

    Sure did know that :)

    We get http://www.washingtonbrown.com.au/property-depreciation-schedules#internationalDepreciation

    We get around these days!

    Regards

    Tyron Hyde

    www,washingtonbrown.com.au

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