What is depreciation?
Depreciation is a tax deduction which is available to be claimed by owners of income producing properties and commercial tenants each financial year. It is the decline in value of the building structure and the plant and equipment assets within it that the Australian Tax Office (ATO) allows as a deduction to be claimed.
Depreciation is often one of the most missed and under claimed deductions. It is considered a non-cash deduction as you don’t need to spend any money on the property to claim it.
Claim significant deductions
Depreciation is able to be claimed under two separate components:
Capital works deductions
Plant and equipment
Typical depreciable plant and equipment assets include:
- Air-conditioning units
- Hairdressing chairs
- Bathroom and kitchen appliances, bookcases and accessories
- Desks and Chairs
- Curtains, blinds and window dressings
See the case studies below for some of the typical deductions we have found for a range of commercial properties.
How do I organise a schedule?
Engaging BMT Tax Depreciation to complete a commercial depreciation schedule can mean that you’re able to claim back thousands in deductions each financial year.
Request a quote for your tax depreciation schedule.
Property details are collected and BMT will arrange access to complete a property inspection.
Your schedule will be available within 5 – 7 days of all information being gathered. BMT can even forward your schedule to your Accountant directly, saving you time.