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 plant and equipment items contained within it. It can be claimed by any owner of an income producing property. This deduction essentially reduces the after tax cost of owning an investment property – investors pay less tax!

Can I estimate the depreciation deductions my investment property has?

In conjunction with Urbantech, BMT Tax Depreciation has provided a tax depreciation calculator on this website, whereby you can estimate the potential depreciation deductions you may be entitled to claim. Click here to access the calculator.

Why do I need a tax depreciation report completed by a Quantity Surveyor?

Quantity Surveyors are recognised by the Australian Taxation Office (ATO) under TR 97/25 as appropriately qualified to estimate construction costs of a building for tax purposes. In addition to this ATO requirement, BMT Tax Depreciation specialise in maximising depreciation deductions for investment property owners.

It is important to note that the estimate provided by the BMT Tax Depreciation calculator cannot be used in a tax return. A complete tax depreciation report should be obtained in order to provide information for your tax return.

I am happy with the potential deductions I have seen on the calculator, how do I order a report?

Tax Depreciation Report Quote

Once you have received and accepted the quote, BMT will then organise an inspection of the property, conduct required council searches, and complete the report within 7-10 days of the inspection.

If my property was built before 1985, is it too old?

Always ask a BMT Tax Depreciation specialist. Sometimes older properties still get substantial deductions.

It is worth noting that:

• Your investment property does not have to be new: Both new and old properties will attract some depreciation deductions.
• If the property was built pre July 1985, it will not be eligible to receive the construction write off allowance, but will be able to claim depreciation on the plant and equipment items within the property.
• BMT Tax Depreciation guarantee that if we cannot find double our fee worth of deductions in the first full financial year claim, there will be no charge for our services.

The BMT Tax Depreciation Difference

BMT Tax Depreciation constantly liaise with the ATO to utilise current legislation to your advantage. The BMT points of difference include:

• 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 maximising tax depreciation for investors! This enables us to concentrate purely on maximising each 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 always fully trained full time BMT staff – they know how to find every deduction, maximising your claim.
• 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 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.
• We allow for all additions/renovations that have been completed before or after purchase as part of your report, so if you renovate we work to maximise the claim.