It’s well known that you can claim wear and tear on a business vehicle, but did you know that you can also claim wear and tear on your investment property? Many Australians are likely to be unaware that their investment properties hold significant tax depreciation deductions, meaning they could be missing out on thousands of dollars.
As your property gets older, the building and items within it start to wear out. The Australian Tax Office (ATO) governs legislation that allows owners of income producing properties to claim a deduction relating to this wear and tear.
Depreciation can be claimed for a variety of building types, including both residential and commercial properties, such as offices, hotels, restaurants, retail spaces, educational facilities, warehouses, agricultural properties and many more. Depreciation falls into two different categories: plant and equipment’ includes easily removable fixtures and fittings such as dish washers, ovens, carpet, blinds, while ‘capital works’ covers the structure of the property and permanently fixed assets including bricks, mortar, doors and driveways.
Depreciation experts are recognised by the ATO
Quantity Surveyors are recognised as one of a select group of professionals deemed qualified to provide construction cost estimates for depreciation purposes. They will use their skills to produce a comprehensive tax depreciation schedule, which outlines all the deductions a property owner is eligible to claim for both capital works and any plant and equipment assets they are eligible to claim.
Benefits of choosing a depreciation expert
You only need to get a depreciation schedule produced once, and it will outline the depreciation deductions for the lifetime of your property. The cost of the report itself is also 100 per cent tax deductible. If you have not previously claimed depreciation, your Accountant may be able to backdate your claim for the previous two years, so you can recoup some additional cash back on previous years’ tax returns.
It is interesting to note that assets removed during renovations may also be eligible to be fully written off as a tax deduction. It is a good idea to engage a Quantity Surveyor prior to construction work starting to make sure that all removed items are identified and captured as part the depreciation report.
BMT Tax Depreciation are a national quantity surveying firm, who specialise in the preparation of tax depreciation schedules for a variety of property types. They use their expertise to ascertain the costs of building works prior to or during construction for feasibility cost management purposes. A BMT Tax Depreciation Quantity Surveyor utilises a combination of cost expertise and knowledge of taxation legislation to concentrate on property depreciation.
The difference is reflected in a property investors’ bottom line
BMT Tax Depreciation will show you how to claim more deductions, pay less tax and see a greater return on your investments. 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.
BMT Tax Depreciation also provide a free, easy to use tax depreciation calculator, which can provide an estimate of available deductions for any property an investor that is planning on purchasing. To access the calculator, click here.
Alternatively, you can contact one of our expert staff on 1300 728 726 for a free estimate of available deductions.