Maximise the cash return from your investment property.
Pay less tax with a depreciation schedule from BMT
Claiming property depreciation on any income producing property can significantly increase on investor's cash flow. Owners of investment properties miss out on thousands of dollars by not claiming property depreciation.
Request a quote or find out the likely deductions available on a current or proposed investment property today.
Tax depreciation helps investment property owners gain more
Often investors are unaware of the significant benefits that come from claiming depreciation on their investment property. The Australian Taxation Office (ATO) allows property owners to claim depreciation deductions on the gradual wear and tear of structural items and for the plant and equipment assets contained within any income producing property.
Depreciation for income producing properties is claimable under two major components:
Capital works deduction (division 43) and plant and equipment (division 40)
Capital works deduction: Is the deduction available for the building structure and the items within it that are deemed irremovable.
What is deductible under capital allowance?
- Fences and retaining walls
- Sinks, basins, baths and toilet bowls
- Clothes lines
- Car parks
Plant and equipment assets: Includes assets which can be easily removed from the property. The asset’s condition, quality and effective life set by the ATO all determine the deductions available.
What is deductible under plant and equipment?
- Hot water systems
- Solar panels
- Air-conditioning units
- Blinds and curtains
- Light shades
- Carpet and flooring
- Security systems
Invest smarter with a BMT schedule
BMT Tax Depreciation is one of a few companies that specialise in tax depreciation. As a member of the Australian Institute of Quantity Surveyors, we pride ourselves on completing comprehensive schedules that achieve the highest possible return. Our quality reputation throughout Australia strongly reflects the service we deliver.
You can have peace of mind that if we do not find double our fee in deductions in the first full financial year you will not be charged for our service.
Claiming our fee
All fees associated with the preparation of a BMT Tax Depreciation Schedule are 100% tax deductible.
To find out more about BMT’s history and service and to hear from some of BMT’s existing clients visit the ‘Why choose BMT Tax Depreciation’ page here
Depreciation: an investor profile
An investor has purchased a property for $420,000 and is receiving $490 per week in rent for a total income of $25,480 per annum. The estimated expenses for the property include interest, rates and management fees, which total $32,000 per annum. The following scenario shows the investor’s cash flow with and without depreciation. A typical $420,000 unit will depreciate by around $11,500 in the first full financial year.
In this example the investor uses property depreciation to go from a negative cash flow scenario, paying out $79 per week, to a positive cash flow scenario, earning $3 per week on the property. By claiming depreciation this investor will save $4,255 for the year.