15th June 2016

Do you claim Depreciation on your investment Property? Act Before July 30 2016 to receive your Special Offer.

Maximise property depreciation this tax time

The Australian Taxation Office (ATO) allows property owners to claim depreciation on the structure as well as the plant and equipment assets contained within any income producing property.

Depreciation for a building's structure can be claimed via a capital works deduction while plant and equipment assets are depreciated based on an individual effective life set by the ATO.

As a general rule, residential properties in which construction commenced after the 15^th of September 1987 are eligible for capital works deductions.

Deductions for plant and equipment assets are not limited by age, rather the condition and quality of each individual asset. Examples of depreciable plant and equipment items include hot water systems, carpets, blinds, ovens and air conditioners.

Generally, newer properties with newer assets and more expensive construction costs will attract greater depreciation deductions simply because they have not depreciated in value as much as older properties. However, older properties still attract depreciation. It is always worth enquiring about the possible depreciation deductions available on a current or potential investment property.

As a non-cash deduction, depreciation is often missed. To ensure depreciation is maximised, investors should contact a specialist Quantity Surveyor and obtain a tax depreciation schedule for their investment property.

The schedule will show deductions for the life of the property (forty years) and will ensure the owner claims all of their depreciation entitlements. The fee for a tax depreciation schedule is 100 per cent tax deductible and those who order a report before the 30^th of June can claim the fee back in the same financial year. 

BMT Tax Depreciation currently is offering a special reduced fee of $715 including GST for Cale Property clients who request a depreciation schedule prior to the 30^th of July. Clients who order and pay for their depreciation schedule before this date will receive a free six month magazine subscription chosen from a selection of available options. 

On average, BMT Tax Depreciation finds between $5,000 and $10,000 in depreciation deductions in the first financial year alone for their clients.

Simply by claiming depreciation, you'll improve your available cash flow and put thousands of dollars back in your pocket.

To learn more, visit the tax depreciation overview page on BMT's website.

Article provided by BMT Tax Depreciation.

Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.  
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia wide service.