A recent property outlook by Colliers International and JLL Hotels and Hospitality Group has predicted that 2016 will be another robust year for Australian hotel owners.
According to John Kenny, the Chief Executive Office of Colliers International Australia and New Zealand, strong consumer confidence is driving demand resulting in increased hotel real estate activity during 2015 and this is expected to continue in 2016.
“Confidence is having a positive impact across the property sector and this optimism is starting to flow through to several of our occupier markets, as businesses become more confident,” he said.
As demand for hotel properties grow, it is important that owners of these types of properties understand the tax depreciation deductions they are entitled to claim.
Often the owners of these types of properties fail to claim all of the tax depreciation deductions they are entitled to. By failing to take advantage of the maximum deductions available, hotel owners could potentially be missing out on thousands of dollars.
What is tax depreciation and how will it assist hotel owners?
The Australian Taxation Office (ATO) allows the owners of income producing properties to claim tax depreciation deductions relating to the wear and tear of the building structure and the plant and equipment assets it contains.
By claiming tax depreciation, hotel owners essentially will reduce their taxable income, therefore they will pay less tax. What’s more, the fee to obtain a tax depreciation schedule outlining all of the deductions available to be claimed is 100 per cent tax deductible.
View a detailed case study on our website and see the difference a tax depreciation schedule can make to a hotel owner’s cash flow.
Learn more: Tax depreciation that’s more accommodating
Below are just some examples of the tax deductible items hotel owners may be able to claim:
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To learn more about the depreciation deductions you can claim for your hotel, speak to one of our expert staff on 1300 728 726 today.