31 Oct 2019

BMT explains how to increase your cash flow by claiming depreciation

The owners of any investment property that generates an income are eligible to claim significant taxation benefits. 

Of all the tax deductions available to property investors, depreciation is the most often missed. 

According to Bradley Beer, the Chief Executive Officer of BMT Tax Depreciation, a staggering 80 per cent of property investors fail to take advantage of property depreciation and therefore miss out on thousands of dollars in their pockets.

“On average, most property investors can claim between $5,000 and $10,000 in deductions in the first year for a residential investment property. By simply requesting a tax depreciation schedule from a specialist Quantity Surveyor, an investor may be able to turn a negative cash flow investment into a positively geared asset,” said Mr Beer.

So, what is depreciation, and how much of a difference can claiming it make to an investor’s available cash flow? 

Depreciation is a non-cash deduction that The Australian Taxation Office (ATO) allows any owner of an investment property to claim due to the wear and tear of a building structure and its fixtures over time.*

If you would like a free estimate of the depreciation deductions available for your investment property, simply contact BMT Tax Depreciation on 1300 728 726 today.

* Under new legislation outlined in the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 passed by Parliament on 15th November 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 previously used plant and equipment assets. Investors can claim deductions on plant and equipment assets they purchase and directly incur the expense for. 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. To learn more visit www.bmtqs.com.au/budget-2017 or read BMT’s comprehensive White Paper document at www.bmtqs.com.au/2017-budget-whitepaper 

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.

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