A major benefit of investing in property is the potential for depreciation to significantly reduce your taxable income.
According to John Sage, a proper depreciation schedule allows you to deduct the property’s wear and tear and its loss in value from your taxes. This can lower your overall tax obligation.
Investors can claim legitimate deductions using a depreciation schedule, which is the only legal means of accounting for the reduction in value of the property structure, maximizing returns while safeguarding rental income.
Even properties that have been upgraded by previous owners can offer tax savings when a quantity surveyor is engaged to calculate depreciation benefits accurately.