80 per cent of property investors are not maximizing their claims. Investors who own income-producing properties are eligible for significant taxation benefits.
Research shows that 80 per cent of property investors are failing to take full advantage of property depreciation and are therefore missing out on thousands of dollars in their pockets.” Depreciation is often missed because it is a non-cash deduction– that is, the investor does not need to spend money to be able to claim it. However, simply by viewing a Depreciation Allowance percentage, investors are still able to take advantage of this deduction, increase their return and pay less tax this financial year.
What is depreciation? As a building gets older, items wear out– they depreciate. Revenue Quebec allows property owners to claim this depreciation as a deduction. Depreciation can be obtained by any property owner who obtains income from their property. Depreciation facts: Investors can adjust previous year’s tax returns and claim missing deductions. An investment property does not have to be new – older properties also have good depreciation potential.
By claiming property depreciation on an income, producing building the owner will pay less tax. Obtaining a depreciation schedule that maximizes deductions may result in an investment property returning a positive income!