30 May 2018

Are you missing out? Its not too late!

Source: Leading Property Managers Australia

80 per cent of property investors aren't maximising their claims. Investors who own income producing properties are eligible for significant taxation benefits.

The Chief Executive Officer of BMT Tax Depreciation, Bradley Beer, said,“ research shows that 80 per cent of property investors are failing to take full advantage of 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– that is, the investor does not need to spend money to be able to claim it. However, simply by ordering a Tax Depreciation Schedule, investors are still able to take advantage of this deduction, increase their return and pay less tax this financial year.

What is depreciation? As a building gets older, items wear out– they depreciate. The Australian Taxation Office (ATO) allows property owners to claim this depreciation as a deduction. Depreciation can be obtained by any property owner who obtains income from their property. Depreciation facts: Investors can adjust previous year's tax returns and claim missing deductions from the ATO. An investment property does not have to be new – older properties also have good depreciation potential.

By claiming property depreciation on an income producing building the owner will pay less tax. Obtaining a depreciation schedule that maximises deductions may result in an investment property returning a positive income. Quantity Surveyors are qualified under the tax legislation ruling TR97/25 to estimate construction costs for depreciation purposes and are one of select few professionals who specialise in providing depreciation schedules. Ensure a depreciation specialist such as BMT Tax Depreciation is used to prepare a depreciation schedule.

The fee is 100 per cent tax deductible. The cost of obtaining a depreciation schedule is 100 tax deductible. Any investor who orders a BMT Tax Depreciation Schedule before June 30 can claim the fee of the depreciation schedule straight back.