If you own residential investment property in your SMSF, there are plenty of legitimate deductions to which you may be entitled, which can be used to reduce your fund’s taxable income.
Depreciation and capital works
One of the deductions most often missed is depreciation and capital works allowances.
If the property was built before 16 September 1987, the owner can claim depreciation on the plant and equipment – the oven, dishwasher, blinds, carpets etc – but not the building. The plant and equipment must be depreciated at varying rates subject to the “effective life” of the asset.