Claiming tax depreciation deductions on investment property has become an important part of a property investing strategy.
Many investment property owners remain unaware of the benefits that tax depreciation provides. There are usually thousands of dollars to be claimed in depreciation deductions on any investment property.
What is Tax Depreciation?
As a building gets older and items within it wear out, they depreciate in value. The ATO allows property investors to claim a deduction related to the building and the plant and equipment items within it. This can be claimed by any owner of an income producing property. This deduction essentially reduces the investment property owner's taxable income – they pay less tax! In order to claim deductions for property depreciation a tax depreciation report should be obtained for each income-producing building.
Why use a quantity surveyor?
Quantity Surveyors are one of the few professionals recognised by the Australian Tax Office to have the appropriate construction costing skills to calculate the cost of items for the purposes of depreciation. BMT also prepares cost plan estimates for all types of buildings. This ensures they have the complex skills and data required to accurately estimate construction costs. Construction costs are estimated in today’s market and historically written-down to the year of construction using yearly cost indices. By using a team of quantity surveyors, like BMT Tax Depreciation, who specialise in property tax depreciation, you can have peace of mind that you are getting a depreciation report that maximises your deductions.
The Advantages of using BMT Tax Depreciation for your Depreciation Schedule
BMT Tax Depreciation say :
What is a BMT Tax Depreciation Report?
BMT Tax Depreciation will:
The BMT Tax Depreciation Website
BMT Tax Depreciation website provides loads of useful information, free of charge:
Are you intrigued and want to read more? Read On...
It is worth enquiring about any property - even one that is 100 years old! Although current tax legislation states that any residential property built before 18 July 1985 cannot claim the capital works (building costs) allowance as a deduction, if any extensions or renovations were completed after 1985, they will attract the capital works allowance.
Additionally, a tax depreciation report covers not only the capital works allowance but depreciation of plant and equipment as well. This means that all properties that obtain an income by the way of rent should be eligible to claim a deduction for the plant and equipment items contained within the property.
Many plant and equipment items contained within a property are able to be depreciated. Some of these items include: Hot water services , Ovens, Vinyl , Ceiling fans , Floating timber Floors, Furniture packages , Dishwashers , Range hoods , Clothes dryers, Carpet , Smoke alarms , Freestanding spas, Blinds, Air conditioners, Curtains, Exhaust fans, Light shades, Security systems, Washing machines , Microwaves, Cook tops.
Tax Depreciation and Renovation
The BMT Difference
"As quantity surveyors in a competitive market place, it is imperative that BMT stays ahead of competitors through constant innovation and a focus on continually improving our systems and people. It is this, along with our customer service excellence and national service coverage, which makes BMT one of the fastest growing and most successful Quantity Surveyors in the Australian marketplace today.
BMT Tax Depreciation frequently liaises with the ATO to utilise current legislation to our clients’ advantage.
Double our Fee or it's Free: Guaranteed – our clients will receive at least double our fee worth of deductions in the first full financial year claim, or there will be no charge for our services.
BMT Tax Depreciation takes a personalised approach to each report to ensure quality.
We do not jeopardise quality in order to offer a cheaper fee.
BMT Tax Depreciation specialises in just that – Tax Depreciation! This enables us to concentrate on maximising each investors claim.
We apportion relevant preliminaries and consultants fees. These can be attributed to items of plant and equipment giving them a higher depreciable value and more tax deductions for our clients.
Our site inspectors are fully trained depreciation specialists – we use BMT staff only, not contractors, which is important in the event of an ATO audit.
BMT reports show projected depreciation for 40 years, the life of the property.
Every report shows detailed calculations (not just a summary) for 10 years which helps accountants easily update reports with replaced assets in later years.
We include additional works or additional plant and equipment – which saves on accounting fees.
Our turnaround time is guaranteed 7 working days after inspection.
We gather needed information from councils and relevant authorities.
The report is tailored to the client’s individual scenario, settlement date and purchase price.
The report is structured to recoup missed deductions – clients can go back and amend their claim."
Material sourced from the BMT Tax Depreciation web site, with thanks.