BMT, Australia’s leading tax depreciation specialists, believes Australian property investors may be unaware of the significant cash flow available to them through depreciation of both common and hidden household items.
These household assets; which can include such items as shower curtains, smoke alarms and lawnmowers, can actually increase the cash flow generated by a property by around 15 per cent.
“Property investors tend to focus on the larger ticket depreciation items available, such as the structure of the house and large plant items in the house,” said BMT managing director, Brad Beer.
“However it’s often the smaller items which can make a significant difference to an investor’s cash flow.
“Property investors can often name a few depreciable items, such as carpet, hot water systems and light fittings, but a range of less obvious items, such as garbage bins, exhaust fans or smoke alarms, are often overlooked.”
According to Brad Beer, some of the items found inside a property which are most frequently overlooked include freestanding bathroom accessories, smoke alarms, door closers and shower curtains.
Outdoors, synthetic lawns, roller door motors, swimming pool cleaning systems and tennis court nets also often go unnoticed as possible sources of savings for investors.
“Though larger assets, such as refrigerators, stoves and washing machines, can have a larger impact on cash flow, smaller items, such as microwave ovens or video recorders, can all certainly add up,” continued Brad Beer.
“This is one of the reasons why I recommend all investors engage the services of a qualified Quantity Surveyor to create a depreciation schedule for their property.
“A qualified Quantity Surveyor will be able to compile a list of all of the plant and equipment deductions available on a property,” concluded Brad Beer.
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BMT Tax Depreciation