» Tax Depreciation

Ways to maximise depreciation tax deductions

BMT team — Wed, 21 Feb 2024 04:53:27 +0000

With ongoing interest rate hikes and subsequent increases in mortgage repayments, it has become increasingly crucial for property investors to find ways to enhance their cash flow. A strategy to achieve this is to maximise the depreciation tax deductions on their investment properties. 1. Get an onsite inspection Research shows that 80% of investors don’t claim the maximum depreciation deductions on their investment properties. Only a specialist quantity surveyor will spot the dollars hidden in the details. Quantity surveyors are highly specialised and when construction work is undertaken or assets are added or removed from a property during its income-producing period, an expert will be able to calculate the depreciation tax deductions accordingly. New as well as older properties can qualify for substantial depreciation tax deductions, but these are often not visible without a physical site inspection. A site inspection by a specialist will ensure that every potential deduction is uncovered and maximised, so that the highest possible depreciation amount can be claimed. In 2023 the Australian Institute of Quantity Surveyors released a white paper stating that the most reliable and secure way to maximise the depreciation deductions on an investment property is by engaging a qualified, reputable quantity surveyor with an onsite inspection to ensure a reliable depreciation schedule. Choose a property depreciation expert like BMT Tax Depreciation who will conduct a site inspection before completing the depreciation schedule. 2. Talk to a specialist Property tax depreciation refers to the wear and tear of an income-producing property and its assets over time. Irrespective of the type of property, renovating and completing upgrades may be an effective way to increase rental income and grow the value of a property, while maximising tax deductions on the investment through depreciation. When it comes to commercial property, both the owner and tenant can claim depreciation tax deductions. The BMT Tax Depreciation Schedule can include separate reports where multiple entities or tenants control different assets or have different acquisition dates. Using industry specific legislation, a specialist will assess the property to ensure every deduction is uncovered and maximised. This includes any fit-out installed or assets removed during an upgrade or renovation. It can also include new amenities like bathrooms, kitchens, accessible parking and security, which be an effective way to add value to the property and secure top-end tenants. In the case of a residential strata complex, all common property items where legislation allows, will be considered when the depreciation schedule is compiled. It is therefore important to keep a record of any documentation related to the purchase agreement and subsequent changes that may have been made to the strata agreement. 3. Tailor your schedule to your investment strategy Plant and equipment depreciation can be claimed using different methods. Determining a property investment strategy at the outset of the property journey, will impact the depreciation method chosen. Diminishing value and prime cost are the two methods of calculating property tax depreciation over the life of the property. Both methods claim the same amount of depreciation over time but achieve different short and long-term cash flow outcomes for the investor. You can only choose one of these depreciation methods for the lifetime of your depreciation schedule, so it is important to analyse and compare how this choice will affect cash flow before making a decision. If you purchase a property as a short-term investment with the purpose of selling again in the coming years, the diminishing value method will offer the most deductions in the earlier years of the property’s effective life. The diminishing value method may therefore be a more attractive option for an investor looking for higher depreciation tax deductions over the short term. Alternatively, the prime cost method, also referred to as the straight-line method, offers equal deductions calculated as a percentage of the cost. If a property is purchased as a long-term investment, the prime cost method will return lower, but more consistent deductions in the later years of the life of the property. We always recommend that investors consult with an accountant or financial adviser to discuss their personal circumstances and investment strategy. A BMT Tax Depreciation Schedule includes both the prime cost and diminishing value methods of depreciation to help make an informed decision before claiming. Request a quote today.

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How depreciation education can set you apart

BMT team — Sun, 08 Aug 2021 23:26:48 +0000

Juggling priorities and stiff opposition makes the property management industry one of the most competitive out there. Property professionals are constantly looking for ways to set themselves apart from the rest. One thing they shouldn’t discount to achieve this is educating landlords on what can make them more money from their investment property, especially big-ticket items like depreciation. What is depreciation? The physical element of a property depreciates in value, just like a new car does as soon as it leaves the dealership. Depreciation is the natural wear and tear of a property and asset over time. While most thigs depreciate, only owners of income-producing property (investors and businesses) can claim it as a tax deduction each financial year. How such a technical area can set you apart Depreciation mightn’t seem like a ‘flashy’ topic to sell to your landlords as it’s a very technical area of taxation legislation (and that’s what accountants are for, right?). But you can make a huge difference to your landlord’s cash flow by making them aware of this tax deduction. It’s different to any other they can claim as it’s a non-cash deduction, so they don’t need to be spend a cent to claim it. Wouldn’t landlords already know about depreciation? With over twenty years of experience, BMT has noticed some key facts among the property investor population. To name a few: Far too many don’t claim depreciation: The reasons people miss out on claiming thousands in depreciation deductions are many; they could simply be unaware of it, believe it’s unavailable to them or have fallen for the wrong advice. Those that do claim could still be missing out: Many investors are still failing to take advantage of the full potential of depreciation. This is usually because they use a ‘cheap and fast’ depreciation schedule that didn’t include a physical site inspection from a depreciation specialist. Some other reasons could be because they haven’t updated their schedule with recent improvements and renovations. Countless investors fall for the myths: There are a lot of depreciation myths out there, but you can make sure none of your clients fall for them. One key myth is that older properties don’t hold depreciation at all, but this is rarely the case. Others believe that second-hand properties don’t have depreciation deductions available (false) or that depreciation only available on a full financial year basis (also false). Start ensuring your clients make the most out of this lucrative deduction by obtaining an obligation-free depreciation estimate from BMT. This simple step can unveil thousands in deductions that your clients don’t know they are missing out on. Numbers prove the value of depreciation If your landlord clients aren’t sold on the idea that depreciation really makes a difference, prove your point with the numbers. The below data shows some deductions landlords can expect from an investment property and the difference depreciation alone makes to their tax savings. What do we provide to help you educate clients about tax depreciation? We provide a range of additional free services to assist property managers such as: Educational training sessions on depreciation either face to face or via webinar. In these sessions we cover a range of frequently asked questions and explain how claiming deductions will help your clients Speakers at your next event or investor night. We will provide an engaging and knowledgeable presentation on depreciation to explain the cash flow benefits directly to your clients Articles for newsletters and publications which explain depreciation in an easy to understand way Co-branded tools and brochures such as our tax depreciation calculator which provides a depreciation estimate for any property. We can also provide printed materials for your office. For more information about tax depreciation or any of the valued services we offer, visit our real estate professionals page or speak to one of our expert staff today on 1300 728 726.

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Most common commercial depreciation questions

BMT team — Wed, 13 Jan 2021 02:23:10 +0000

Owners and tenants of commercial property are often unaware of the depreciation deductions they can claim. Over the last twenty years, we have clarified many questions relating to commercial property depreciation and how it’s claimed. But to save you time, here is a comprehensive list of answers to the most common questions asked by both commercial owners and tenants. Contents: What is commercial property depreciation? Can commercial property be too old to claim depreciation? Can both a commercial tenant and owner of the same building claim depreciation? Do 2017 legislation changes apply to commercial properties? What is temporary full expensing, and can commercial owners claim it? Can depreciation be claimed on owner-occupied commercial properties? What is scrapping? If the previous owner completed renovations on the commercial property, can the current owner claim depreciation on these? What is commercial property depreciation? Depreciation is the natural wear and tear of a property and its assets over time. This non-cash deduction can be claimed each financial year. There are two categories that depreciation can be claimed under. The first is capital works, which refers to the structure of the property and any fixed assets. Commercial capital works deductions are often found from the building’s walls, doors, windows, toilets and air-conditioning ducting. The second depreciation category is plant and equipment. This versatile component covers the property’s easily removable or mechanical fixtures and fittings. Some commercial plant and equipment assets include floor coverings, desks, shelving, kitchen appliances and window coverings. Can commercial property be too old to claim depreciation? No, regardless of age all commercial properties hold depreciation entitlement. It’s always worth asking the question. Commercial properties where construction commenced after 20 July 1982 are eligible for all capital works deductions. If the property was constructed before this date, capital works deductions may still be available through any improvements made, for example retiling a bathroom or replacing a window. This is in addition to all eligible plant and equipment assets which can be claimed no-matter the age. Can both a commercial tenant and owner of the same building claim depreciation? Yes. The owner can claim depreciation on the property’s structure and any assets they own that are fixed to the building like hot water systems, air-conditioners and lights. The tenant can claim depreciation on the assets they own within their fit-out. BMT Tax Depreciation ensure both parties claim all depreciation deductions available and in a compliant way by conducting physical site inspections. Do 2017 depreciation legislation changes apply to commercial properties? The short answer is no. Depreciation legislation introduced in 2017 changed the way residential investors can claim depreciation for plant and equipment assets. The changes mean if they exchanged contracts for a second-hand investment property after 7:30pm on 9 May 2017, they can’t claim depreciation on the property’s existing plant and equipment assets. The good news is that commercial investors and tenants aren’t affected by the legislation change. They can still claim any available depreciation on all existing plant and equipment assets. What is temporary full expensing, and can commercial owners claim it? The temporary full expensing measure is currently in place until the end of the 2022-23 financial year. This incentive allows businesses that purchase plant and equipment assets from 6 October 2020 to 1 July 2023 to instantly write the asset’s cost as a tax deduction. Any business with an aggregated turnover of up to $5 billion can take advantage of full expensing. Operating a business is the key eligibility requirement. Commercial property owners don’t always run a business and therefore can’t always claim full expensing. Can depreciation be claimed on owner-occupied commercial properties? Yes. For businesses in the position to do so, owning and occupying the commercial property they operate from can be a financially viable move. In this scenario, they can still claim both the capital works and plant and equipment deductions available. This is sometimes misunderstood due to residential owner-occupiers being unable to claim depreciation. What is scrapping? The owner of a ‘disposed’ asset that has un-deducted depreciable value can claim this entire amount as an immediate deduction. This process is called scrapping and can boost cash flow by thousands in just one year. Scrapping can occur if the property is renovated, repaired or a commercial tenant has moved out. To put it into practice: If a commercial owner completed a renovation disposed of carpet that had an un-deducted depreciable value of $2,000, they can claim the $2,000 in the same year. If the previous owner completed renovations on the commercial property, can the current owner claim depreciation on these? Yes. Anything that’s part of a previous renovation will be estimated and the available depreciation will be determined. This includes items which may not be so obvious, for example, new plumbing and updated electrical wiring. BMT has completed thousands of tax depreciation schedules for commercial property owners and tenants. These schedules have been across all different commercial industries from hospitality, manufacturing to healthcare and public transport facilities. Start claiming commercial depreciation and contact BMT today on 1300 728 726 or Request a Commercial Quote.

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Capital works deductions explained

BMT team — Tue, 09 Jul 2019 06:00:42 +0000

Making sense of tax depreciation lingo can sometimes be confusing but as an investor, it’s important that you have a good understanding of the depreciation deductions you can claim to ensure you’re getting the most out of your investment property. As outlined by the Australian Taxation Office there are two categories that make up depreciation deductions, division 43 capital works deductions and division 40 plant and equipment depreciation. What are capital works deductions? Capital works deductions are income tax deductions an investor can claim for the wear and tear that occurs to the structure of the property and items considered to be permanently fixed to the property. This includes any structural improvements that may have been made by a previous owner during a renovation within the relevant dates. In a residential property, capital works deductions cover the following items: Bricks, mortar, walls, flooring and wiring Built-in kitchen cupboards Clothes lines Doors and door furniture (handles, locks etc.) Driveways Fences and retaining walls Sinks, basins, baths and toilet bowls Some common items in commercial properties that can be claimed as capital works deductions include: Bricks, mortar, walls, flooring, roofing and wiring Sinks, tiles, basins and toilet bowls Mezzanines Ducting for air conditioning Particular assets can cause confusion because some parts will qualify for plant and equipment depreciation while other parts qualify for capital works deductions. An example of this is an air conditioning unit, where the unit itself depreciates under division 40 whilst the ducting for the same unit falls under division 43. Similarly, an in-ground pool falls under the division 43 whilst the pumps and filtration equipment for the pool are division 40, depreciating plant and equipment assets. As a general rule, any residential building where construction commenced after the 15th of September 1987 will entitle their owner to capital works deductions at a rate of 2.5 per cent per year for up to forty years. In a commercial building, capital works deductions generally apply to buildings where constructed commenced after the 20th of July 1982. If your property was constructed prior to these dates, it is still important to get in touch with a qualified quantity surveyor, such as BMT, as often these buildings will have undergone some form of renovation which can result in capital works deductions for the owner. To order a BMT Tax Depreciation Schedule to ensure you are maximising your depreciation deductions on your investment property, you can Request a Quote online or call us on 1300 728 726.

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Tax depreciation myths busted

BMT team — Wed, 03 Oct 2018 05:39:44 +0000

There are many myths out there when it comes to tax depreciation, especially around what property investors can claim. Tax depreciation can benefit anyone with an investment property. It is about working out how much your investment property depreciates over time and claiming these values at tax time. A tax depreciation schedule is all about making your rental property work for you. The experts at BMT Tax Depreciation help to ‘bust’ some common tax depreciation myths. In this article we will look at the following myths: MYTH: My accountant will arrange this for me MYTH: You can only depreciate new properties MYTH: I have had my investment property for two years without a schedule in place so there’s no point now MYTH: It’s just more money to spend each year MYTH: I only have a small unit so there won’t be much to depreciate MYTH: Renovations were completed by the previous owner, so I can’t claim them MYTH: Once I have spent money on an asset or capital work, I can claim it MYTH: More expensive items get higher depreciation MYTH: All construction costs are eligible for depreciation MYTH: My accountant will arrange this for me BUSTED: Accountants, Real Estate Agents and Property Valuers are not allowed to estimate the cost of construction for properties built after 1985. The Australian Tax Office (ATO) has identified Quantity Surveyors as appropriately qualified to estimate the original construction costs in cases where that figure is unknown. MYTH: You can only depreciate new properties BUSTED: Older properties also depreciate. There are two types of depreciation an investor may be eligible to claim, plant and equipment assets for the easily removable fixtures and fittings and capital works deductions for the building structure. Investors can claim capital works deductions on properties where construction commenced after 15 September 1987. They may also be eligible to claim capital works deductions on any structural renovations which have occurred. Changes to depreciation rules announced in 2017 mean some investors may not be eligible to claim plant and equipment. However, these rules do not affect those investors who exchanged contracts prior to 7:30pm on 9 May 2017, owners of new residential properties or commercial property owners. Investors can also claim depreciation on assets they purchase and install themselves once the property is income producing. It is always worth contacting a Quantity Surveyor to discuss whether depreciation applies to your individual circumstances. MYTH: I have had my investment property for two years without a schedule in place so there’s no point now BUSTED: Not at all… You can still claim previous year’s depreciation; this is known as recouping missing deductions and can be done for up to two previous financial years. MYTH: It’s just more money to spend each year BUSTED: A tax depreciation schedule is valid for up to 40 years. The one-off fee is completely tax deductible. MYTH: I only have a small unit so there won’t be much to depreciate BUSTED: Even if you own a small unit or apartment, you may be able to claim part of the common area as well as the unit itself. MYTH: Renovations were completed by the previous owner, so I can’t claim them BUSTED: It doesn’t matter if the works were undertaken by the previous owner. When you purchased the investment property you have also purchased the entitlement to claim depreciation on a of the property’s improvements. What they did with their assets, does not affect you and what you do with the same assets. MYTH: Once I have spent money on an asset or capital work, I can claim it BUSTED: Under Division 40, you can only start depreciating an asset once it has been “used or installed ready for use”. Not as soon as you have paid for the asset. For capital works under Division 43, you can claim deductions only once construction has been completed. MYTH: More expensive items get higher depreciation BUSTED: Low-value pooling applies to items in an investment property that have a value less than $1,000. Placing items in a low-value pool allows the owner to accelerate the rate of depreciation, increasing deductions earlier. MYTH: All construction costs are eligible for depreciation BUSTED: Not all construction costs are eligible. When claiming depreciation of a building, you are essentially only claiming what is there now. It is also important to note, you cannot claim demolition or site clearing. BMT Tax Depreciation will show you how to claim more deductions, pay less tax and see a greater return on your investment property. BMT Tax Depreciation schedules are designed specifically for ease of use by accountants to incorporate depreciation deductions into an investors’ income tax assessment. All information is prepared in full compliance with ATO regulations, meaning that deductions are detailed and evidenced correctly in the event of an audit. * Under new legislation outlined in the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 passed by Parliament on 15 November 2017, investors who exchange contracts on a second-hand residential property after 7:30pm on 9 May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets. Investors can claim deductions on plant and equipment assets they purchase and directly incur the expense for. Investors who purchased prior to this date and those who purchase a brand-new property will still be able to claim depreciation as they were previously. To learn more, visit the BMT Tax Depreciation website or read BMT’s comprehensive White Paper. Alternatively, for obligation free advice contact the expert team at BMT Tax Depreciation on 1300 728 726.

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What are the depreciation differences between old and new residential properties?

BMT team — Fri, 14 Sep 2018 06:18:11 +0000

Property depreciation is a non-cash tax deduction available to the owners of income producing properties. As a building gets older, items wear out – they depreciate. The Australian Taxation Office allows property owners to claim this depreciation as a tax deduction. The Australian Taxation Office (ATO) clearly defines two types of depreciation allowances available for property investors: Division 43 capital works allowance Division 40 plant and equipment depreciation The capital works allowance refers to what an investor can claim for the wear and tear that occurs to the structure of the property. This includes any structural improvements that may have been made during a renovation. Plant and equipment depreciation on the other hand, refers to the deductions an investor can claim for the wear and tear that occurs to the easily removable fixtures and fittings found within the property. Investors often wonder about the depreciation differences of older properties compared to new properties. The simple answer is that the owners of newer properties will receive higher depreciation deductions. However, investment properties both new and old can attract depreciation deductions for their owners. Capital works deductions are calculated at a rate of 2.5 per cent of the structural costs of a building and can be claimed per year for forty years. Construction costs generally increase over time, making building write-off deductions on new buildings higher. Owners of older properties can claim the residual value of the building up to forty years from construction. For example, if an investment property is five years old, the owner will have thirty five years left of capital works deductions to claim. Capital works deductions are governed by the date that construction began. Any property that was constructed after the 15th of September 1987 attracts capital works deductions. If your property was constructed prior to that date, you should still contact BMT as you can claim for any renovations that the property has undergone, including those that were carried out by previous owners. Under new legislation passed on Wednesday 15th November 2017, owners of second-hand residential properties (where contracts exchanged after 7:30pm on the 9th of May 2017) are no longer eligible to claim depreciation on existing plant and equipment assets, such as air conditioning units, solar panels or carpet. However, owners of these properties can still claim depreciation on the plant and equipment assets they purchase for their property. There has been no change to capital works deductions, which generally account for anywhere between 85 and 90 per cent of a claim. The good news is that this means Australian property investors can still claim thousands of dollars in deductions. Additionally, if you purchased a property before 7:30pm on the 9th of May 2017, you can continue to claim as before. Find out more about the 2017 depreciation legislation changes. It’s more important than ever to work with a specialist Quantity Surveyor to ensure that all deductions are identified and claimed correctly under the new legislation. Each and every BMT Tax Depreciation Schedule will be tailored to suit an individual’s property investment scenario, ensuring that all deductions are maximised. For further information on any property investment scenario, speak with one of the expert staff at BMT Tax Depreciation on 1300 728 726.

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When will I actually see the benefits of claiming depreciation?

BMT team — Tue, 31 Jul 2018 00:37:41 +0000

Claiming depreciation is key to unlocking your investment property’s cash flow potential and saving thousands of dollars each year. If you have just claimed depreciation for the first time, you will benefit from extra cash flow which could give you the flexibility to diversify your portfolio or pay off any accumulated debts. But perhaps the biggest question on your mind is when will I actually see benefits of claiming depreciation? Put simply, you will begin to see the benefits at the time of your next tax return. On average, most property investors can claim between $5,000 and $10,000 in deductions in the first year alone for a residential investment property. This could mean the ability to turn a negative cash flow investment into a positively geared asset. Your depreciation schedule lasts for the lifetime of the property, which is set at forty years. You will continue to see the benefits of depreciation over the forty years, with deductions saving you money on each tax return. The extra cash can be very useful if your property is in need of a fresh coat of paint or appliance updates. Alternatively, you can opt to use a Pay As You Go withholding variation to see the benefit of deductions regularly, rather than in one lump sum at the end of the financial year. The PAYG system allows investors to take advantage of deductions on a regular basis by estimating your expected tax refund for the financial year and allowing your employer to reduce the amount of tax taken out of your wages. If you would like to access your tax deductions on a regular basis through the PAYG variation, speak to your Accountant. They will provide your estimated financial information to the Australian Taxation Office on your behalf to start the process. For property investors, the tax liability is reduced based upon the anticipated deductions like interest, maintenance, rates, and depreciation on a rental property. After a PAYG variation request has been submitted by your Accountant, your take home pay will increase as your employer reduces the amount of tax withheld. Some investors choose to use the PAYG withholding variation for the flexibility it provides and for access to extra money should unexpected issues with your investment property arise throughout the year. If you are considering whether to wait until next tax time to see the benefit of your depreciation claim or use the PAYG variation, it is important to consult your financial advisor. They will take your individual financial circumstances into account and offer you tailored professional advice.

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Tax depreciation differences between new and old properties

Bradley Beer — Thu, 18 Feb 2016 00:49:55 +0000

A common mistake many investors make is thinking that their older property isn’t eligible for tax depreciation. However, there are many cases in which you can still make a claim. Take a look at the tax depreciation differences between old and new properties, and discover how an older property could still help you claim thousands. In this article we will explore: Types of tax depreciation Dates matter for tax depreciation Deductions for properties built before 1987 Getting the right advice Types of tax depreciation A common question asked by investors is “can my older property still get depreciation?” The short answer is very likely yes. While it’s true that newer properties will generally give you more depreciation for the simple fact that they’re newer and cost more to build, older properties still offer many significant tax benefits for investors. Older properties still offer many significant tax benefits for investors For starters, there are two different types of tax depreciation deductions: The capital works deduction. The plant and equipment deduction. The capital works deduction refers to the long-lasting, structural items of a property – such as your concrete floors, walls and roof. The plant and equipment deduction covers the removable items within a property, such as the water heater, carpets, stoves, blinds and curtains. Depending on the age of your property, you may be able to claim one or both types of deductions. Dates matter for tax depreciation While most properties do qualify for some level of depreciation, there are some important dates to keep mind. In particular, the capital works deduction only applies to residential properties built after 15 September 1987, so in order to claim this deduction, a property needs to have been built (or renovated) after this date. Read more: 7 steps to claiming on your investment property at tax time The capital works deduction lets you claim 2.5% of the actual construction costs of a property at the time it was built, for up to 40 years. For example, if your investment property was built in 2000 with a structural cost of $400,000, you’ll get a 2.5% deduction worth $10,000 each year for up to 40 years from the time it was built, or until 2040. So, if you’re lining up two houses next to each other to buy – one built in 1986 and the other built in 1988, and all other things being equal – you should consider buying the house built in 1988 because you can still claim a percentage of the building allowance deduction. The capital works deduction lets you claim 2.5% of the construction costs over 40 years Deductions for properties built before 1987 What if your investment property was built prior to 1987? Does that mean you can’t claim anything under the capital works deduction? Not necessarily. Because the capital works deduction covers the structural items of a property, this also includes any renovations done to the property after 15 September 1987. Older properties, especially now, are being renovated. So even though a building may be older than 1987 it may still have years of renovation-related tax depreciation left, which can be claimed at the regular capital works 2.5% annual rate. There’s also the plant and equipment deduction, which is not related to the age of your property, but to the items themselves. With many common household items having an effective life span of 10 years or more, the savings can be substantial. The key is to understand which items in your property still have value, and to not be too hasty in throwing them away. The plant and equipment deduction is not related to the age of your property Getting the right advice When it comes to older investment properties, the question isn’t whether a property will qualify for tax depreciation, but rather how much it will qualify. That’s why it’s important to seek out the right advice. With a few photos and some basic questions, a qualified Quantity Surveyor can easily give you an estimate on your property’s available deductions. This story was first seen online at realestate.com.au: The difference in tax depreciation between old & new properties

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Investors of all ages reaping the benefits

BMT team — Thu, 10 Dec 2015 03:23:24 +0000

A recently released 2015 Domain Consumer Insights Study suggests that investing in property is a pastime of Australians of all ages. One in five Australians own investment properties and while many might assume that the majority of investors who make up this statistic are baby boomers, this couldn’t be more untrue. The Domain report found that the number of Generation Y’s who own multiple investment properties is now on par with Baby Boomers. 16 per cent of Generation Y’s own two or more properties compared with 17 per cent for both Baby Boomers and Generation X’s. The report also found that the age Australian’s are buying investment properties is getting younger, with the average age of investor purchasers sitting at thirty four years of age. While this is the average, those Generation Y investors who become investment property owners generally do so at the young age of just twenty five. The average age for purchasing an investment property for those who belong to the Generation X category is thirty five years, while for Baby Boomers the average age that they became property investors was forty five. However, the report shows that a significant number of Generation Y’s are still living at home with Mum and Dad, with 26 per cent of those who fall into this category living at home. Future investment in property also looks set to have a bright forecast, as almost half of those planning to invest over the next three years will be first time investors purchasing for the first time. With such significant numbers purchasing or planning to purchase an investment property, it will become even more important for investors to take advantage of the tax depreciation benefits available from these properties. 80 per cent of investors still fail to claim the maximum depreciation deductions for their investment property. Yet it is as simple as obtaining a comprehensive depreciation schedule outlining the available deductions to make sure all the benefits from a property are received come tax time. Investors who would like more information about the depreciation deductions available in their property can speak to one of BMT’s expert staff on 1300 728 726 or they can request a quote online. To read a press release from Domain about the study and download their full fact sheet visit: www.domain.com.au/group/press_release/property-moguls-australian-property-investors-starting-young/.

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BMT Tax Depreciation on Your Property Empire – 07/09/2015

BMT team — Thu, 10 Sep 2015 06:55:09 +0000

BMT Tax Depreciation Chief Executive Officer Bradley Beer joins Your Property Empire host Chris Gray to discuss the property market and how it is seen by tax depreciation specialists through the property depreciation activity from property investors. They also look at properties with Nathan Gallagher head of Real Estate News Limited, and at market numbers from around the country presented by Eliza Glastonbury from Century 21.

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