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Property Market Improves
Lower interest rates have meant the stress has been significantly reduced for
many property owners in the last few months.
A number of factors have influenced the property industry recently, mainly
due to the global economic downturn:
- Official interest rates fall to the lowest levels in years;
- The share and commodity markets have deteriorated, resulting in
many investors pulling their money out;
- In October 2008, the federal government offered the First Home
Owner’s Boost (FHOB) – an increase to the First Home Owner’s
Grant (FHOG). The grant was increased from $7,000 to $14,000
(for homes purchased) and $21,000 (for new homes built). The FHOB
applies to contracts entered into on or after 14 October 2008 and on
or before 30 June 2009;
- Improvement in housing affordability in many areas; and
- Demand for rental properties
While investment property owners won’t be getting any benefit from the
FHOG increases, those with variable interest rates will be enjoying lower
repayments.
Want Even More Money in Your Pocket This Year?
Obtaining a depreciation report that maximises deductions may result in your
investment property returning a positive income.
Qualified under tax legislation TR97/25 to estimate construction costs
for depreciation purposes, Quantity Surveyors are one of a select few
professionals who specialise in providing depreciation reports.
The importance of obtaining a depreciation report from a Quantity Surveyor
can not be underestimated. BMT Tax Depreciation focus purely on maximising
the depreciation deductions from investment properties. By taking the hassle
out of depreciation, we save the investor and accountant time and money.
BMT Tax Depreciation Reports – Continuous Improvement
As part of our continuous improvement plan, BMT Tax Depreciation has
recently introduced an improved tax depreciation report. The new report
aims to improve the ease of use for accountants and investors. The following
additions have been made:
1. Effective life and pooled assets calculation – The BMT Tax Depreciation
Report now provides a total of the Division 40 effective life and pooled assets.
This is useful when entering total plant and equipment into accounting
software - saving the accountant/investor time and money.
2. Pro-rata calculation – An automatic pro-rata calculation will be used
when the property is lived in. This is displayed on the property information
page and will include both Division 40 plant and equipment and Division 43
capital works allowance. This will show an automatic calculation of the partial
financial year that the property is available for rent.
3. Display of effective lives - The effective lives will now be displayed
for each asset in the report. This can be used when entering into some
accounting software speeding up the process, saving time and money.
It is important to obtain a Tax Depreciation Report from a reputable company
that will maximise your depreciation deductions. It may mean the difference
between thousands of dollars each financial year.
BMT Tax Depreciation constantly liaise with the ATO to utilise current
legislation to your advantage. The BMT points of difference include:
- Double our Fee Guarantee - you 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 take a personalised approach to each report
to ensure quality.
- We do not jeopardise quality in order to offer a cheaper fee.
- BMT Tax Depreciation specialise in just that – Tax Depreciation!
This enables us to concentrate purely 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.
- BMT reports project depreciation for 40 years, the life of the
property. Every report projects detailed calculations for 10 years
(not just a summary) which helps accountants update reports with
replaced assets in later years
If you are looking to purchase an investment property this year, it is important
to think about the property’s depreciation potential when considering the
purchase. Depreciation deductions alone may make the property purchase
more feasible.
Get the most out of your investment property in 2009 and every year after
that. Contact BMT Tax Depreciation today!
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