Any property that generates income for the owner is eligible to significant taxation benefits.
The Chief Executive Officer of BMT Tax Depreciation, Bradley Beer, says “research shows that 80 per cent of property investors are failing to maximise the deductions claimed via property depreciation and are therefore missing out on thousands of dollars in their pockets.”
Depreciation is often missed because it is a non-cash deduction meaning that an investor does not need to spend money in order to claim it.
As a building gets older, items wear out – they depreciate. The Australian Taxation Office allows property owners to claim this depreciation as a deduction*. Depreciation can be claimed by any property owner who obtains income from their property.
Quantity Surveyors are one of the few professionals recognised by the ATO to have the appropriate construction costing skills required to calculate the cost of items for the purposes of depreciation.
*Under proposed changes outlined in draft legislation (section 2 of Treasury Laws Amendment Bill 2017), investors who exchange contracts on a second hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on plant and equipment assets. 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. Investors should note that these changes are not yet law, as the legislation still needs to be passed through the senate for confirmation. BMT Tax Depreciation remain in discussion with government around the new changes and will keep our clients informed on the outcome. To learn more visit www.bmtqs.com.au/budget-2017.
For advice on what depreciation deductions are available for your investment property, contact the expert team at BMT on 1300 728 726.
BMT has a relationship with Professionals Coolangatta Tweed and can offer their clients a special fee of $715 when their order a BMT Tax Depreciation Schedule.
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.