What is tax depreciation?

Tweet

Are you a newbie to the real estate industry? or just need refreshing as to what tax depreciation is?

Every investment property owner needs a capital allowance and tax depreciation report. 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 investment property owner’s taxable income – they pay less tax! There are usually thousands of dollars to be claimed in depreciation deductions on any investment property. 

There are many benefits for investors when claiming tax depreciation, some include:

• More money in your pocket at tax time
• You can adjust your previous tax returns – get your money back from the ATO!
• Double our fee or its free Guaranteed: If we cannot find double our fee worth of deductions in the first full financial year claim, there will be no charge for our services
• The fee for a tax deprecation report is 100% tax deductible
• BMT find investors an average of between $5,000 and $10,000 as a first full year deduction
• BMT work with your accountant

Great website for you to estimate your depreciation potential for your investment.. go go go go check it out!!

http://www.bmtqs.com.au/other/depreciation-calculators/CustomDepreciationCalculator.aspx?company=firstnational&cookieCheck=true&cookieCheck=true