What is property depreciation? As a building’s structure and its plant and equipment get older, they gradually wear out and depreciate in value. The Australian Tax Office (ATO) allows property investors to claim this process as a non-cash deduction, meaning that no money needs to be spent in order to make a claim. By maximising property depreciation claims, property investors are able to increase their cash flow by thousands of dollars each year.
How do I claim?
In order to ensure that you claim your maximum possible deductions, a Quantity Surveyor specialising in tax depreciation should be contacted, being one of the only professions recognised by the ATO as possessing the required skills to assess the full depreciation potential of investment properties. BPRE has formed a relationship with BMT Tax Depreciation, Australia’s leading authority on property depreciation tax deductions.
BMT specialise in producing high-quality tax depreciation schedules that provide property investors with thousands of dollars in depreciation deductions each year. By working with your Accountant, BMT ensures that your depreciation claim is maximised and included in your next tax assessment. Additionally, if you have previously failed to claim depreciation for an investment property, the ATO allows for up to two years’ worth of missed deductions to be claimed back.
BMT Tax Depreciation are Australia’s leading Quantity Surveyors specialising in property depreciation. Each year, BMT prepares thousands of depreciation schedules for a variety of residential and commercial properties across Australia. For investors looking to maximise their cash flow, here are a few benefits of using a BMT Tax Depreciation Schedule to claim depreciation deductions.
- Investors can claim an average of $5,000 – $10,000 in deductions on properties in the first full financial year
- Tax returns for the previous two financial years can be adjusted if you have not been claiming depreciation
- A tax depreciation schedule from BMT Tax Depreciation will last the life of the property (forty years)
- A depreciation expert will visit the property to complete a site inspection to ensure all plant and equipment assets are included in your depreciation schedule
- As specialist Quantity Surveyors, BMT are affiliated with industry regulating bodies such as the Australian Institute of Quantity Surveyors (AIQS), the Royal Institute of Chartered Surveyors and The Auctioneers & Valuers Association of Australia (AVAA).
- BMT Tax Depreciation guarantee to find double their fee worth in deductions or they will not charge for their services
- The fee for a tax depreciation schedule is 100% deductible
The video series to the right highlights the benefits of claiming depreciation and answers many frequently asked questions. This series will help you understand your tax depreciation entitlements and the process used to prepare depreciation schedules.
Just what the Doctor ordered, a healthy tax deduction
Did you know that Doctors can save thousands of dollars each year by claiming property depreciation?
What is depreciation?
As a building gets older and items within it wear out, they depreciate in value. The Australian Taxation Office allows commercial property owners to claim deductions related to the building and the plant and equipment items contained within the property.
Depreciation can be claimed by the owner of any income producing property and essentially reduces the owner’s taxable income so they pay less tax. In commercial properties, commercial tenants are also entitled to claim depreciation for any fit-out they install in the property once their lease starts.
If a tenant decides to vacate the property and lease conditions mandate the tenant returns the property to its original condition, they may also be able to claim any remaining depreciable value for removed and scrapped assets within the year of removal.
It is important both commercial property owners and their tenants consult with a specialist Quantity Surveyor and arrange a tax depreciation schedule. BMT Tax Depreciation will perform a thorough site inspection to take measurements and get photographic evidence to ensure both the owners and tenants claims are maximised.
What assets can Doctors claim?
Below are just some of the depreciable assets Doctors could be claiming deductions for:
Depreciation will make a difference to your cash flow
Below is a real example of the difference depreciation deductions can make for General Practitioners:
Speak with a depreciation expert
Doctors should contact a specialist Quantity Surveyor such as BMT Tax Depreciation and request a depreciation schedule. BMT guarantee to find double their fee in deductions or they will not charge for their services. To contact BMT Tax Depreciation, phone 1300 728 726.
Tax depreciation calculator
To estimate the deductions that may be claimable for an investment property, the BMT Tax Depreciation Calculator can be used.
The estimates generated by this calculator are based on the deductions calculated by BMT for thousands of depreciation schedules prepared for property investors over more than seventeen years.