{"id":16284,"date":"2021-10-28T10:00:25","date_gmt":"2021-10-27T23:00:25","guid":{"rendered":"https:\/\/trc-gorod.ru\/?p=16284"},"modified":"2022-03-02T16:03:05","modified_gmt":"2022-03-02T05:03:05","slug":"a-property-investors-guide-to-depreciation","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/a-property-investors-guide-to-depreciation\/","title":{"rendered":"A Property Investor\u2019s Guide To Depreciation"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|desktop” admin_label=”Section_2_Text Left:” _builder_version=”4.10.5″ background_color=”#FFFFFF” custom_padding_tablet=”50px|0|50px|0″ custom_padding_phone=”” transparent_background=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ custom_padding_last_edited=”on|phone” _builder_version=”4.9.4″ _module_preset=”default” background_color=”#FFFFFF” custom_padding=”50px|50px|50px|50px|false|false” custom_padding_tablet=”” custom_padding_phone=”30px|10px|30px|10px|false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.9.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” disabled_on=”off|off|off” _builder_version=”4.9.4″ _dynamic_attributes=”src” _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.9.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title date=”off” comments=”off” featured_image=”off” _builder_version=”4.10.5″ _module_preset=”default” title_font_size_tablet=”” title_font_size_phone=”26px” title_font_size_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.9.4″ _module_preset=”default” background_color=”#FFFFFF” custom_padding=”0px|50px|50px|50px|false|false” custom_padding_tablet=”” custom_padding_phone=”10px|10px|10px|10px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.9.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Text_B:” _builder_version=”4.10.5″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Every smart property investor knows that to create and maintain a portfolio, we need to have good cash flow. One of the ways we can support this is by using depreciation and tax.\u00a0<\/span><\/p>\n

But, just like equity, depreciation only works for us if we know how to access and then leverage it.<\/span><\/p>\n

Like all things tax, depreciation can be a tricky concept to grasp. But, once you get your head around it, depreciation can make a significant impact on the quality of your cash flow.<\/span><\/p>\n

WHAT IS DEPRECIATION?<\/span><\/h2>\n

In terms of property investment, when we talk about depreciation, we are talking about a reduction in the value of an asset ie how much it is worth now, vs what it was worth when you bought it.<\/span><\/p>\n

For investors depreciation does not simply account for a reduction in property value, but can also be used against fixtures, fittings, furniture and other items pertaining to the property.<\/span><\/p>\n

WHY IS DEPRECIATION IMPORTANT FOR PROPERTY INVESTORS?<\/span><\/h2>\n

While adding up how much you\u2019ve \u201clost\u201d in value of an asset sounds like a bad thing, when it comes to depreciation, it\u2019s the opposite.<\/span><\/p>\n

The markdown of assets does not mean you have lost that amount of cash, or that the item is less useful. Simply put, it is that the item is simply valued as less on paper.<\/span><\/p>\n

An example might be a carpet that was worth, on paper, $3000, and 12 months later it\u2019s now worth $2500. That\u2019s a negative loss of $500 on paper, <\/span>which you can claim in tax<\/b>.\u00a0<\/span><\/p>\n

WHAT CAN INVESTORS CLAIM DEPRECIATION TAX ON?<\/span><\/h2>\n