Tax Depreciation Hints
As a building gets older and items within it wear out, they depreciate in value.
The ATO allows property investors to claim a deduction related to the building and plant and equipment items contained within it. It can be claimed by any owner of an income producing property. This deduction essentially reduces the after tax cost of owning an investment property – investors pay less tax!
Can I estimate the depreciation deductions my investment property has?
In conjunction with Forbes Stynes Real Estate, BMT Tax Depreciation has provided a tax depreciation calculator on this website, whereby you can estimate the potential depreciation deductions you may be entitled to claim. Click here to access the calculator.
Why do I need a tax depreciation report completed by a Quantity Surveyor?
Quantity Surveyors are recognised by the Australian Taxation Office (ATO) under TR 97/25 as appropriately qualified to estimate construction costs of a building for tax purposes. In addition to this ATO requirement, BMT Tax Depreciation specialise in maximising depreciation deductions for investment property owners.
It is important to note that the estimate provided by the BMT Tax Depreciation calculator cannot be used in a tax return. A complete tax depreciation report should be obtained in order to provide information for your tax return.
I am happy with the potential deductions I have seen on the calculator, how do I order a report?
Tax Depreciation Report Quote
BMT will then organise an inspection of the property, conduct required searches, and complete the report within 7-10 days of the inspection.
If my property was built before 1985, is it too old?
Always ask a BMT Tax Depreciation specialist. Sometimes older properties still get substantial deductions.
It is worth noting that:
* Your investment property does not have to be new: Both new and old properties will attract some depreciation deductions.
* If the property was built pre July 1985, it will not be eligible to receive the construction write off allowance, but will be able to claim depreciation on the plant and equipment items within the property.
* BMT Tax Depreciation guarantee that if they cannot find double our fee worth of deductions in the first full financial year claim, there will be no charge for there services.