Buying an investment property comes with a number of benefits. Not only do you receive a rental income, but you will also over time benefit from capital gains if the property rises in value.
Another little known benefit of owning an investment property is through claiming depreciation as the building grows in age, both on the building itself and what’s in it - the fittings and fixtures.
The Australian Taxation Office (ATO) allows investors to claim this decreasing value as your property ages through annual tax deductions.
BMT Tax Depreciation is an 100% Australian-owned and independent company which specialises in helping you maximise the deductions you can make through depreciation. They’ve been in business since 1997 and have over 160 full-time specialist staff to help clients across Australia.
They also have a number of memberships and registrations which demonstrates their professional commitment. They’re:
- members of the Australian Institute of Quantity Surveyors (AIQS)
- members of the Royal Institute of Chartered Surveyors (RICS)
- registered tax agents for rental, commercial and investment properties
- members of the Auctioneers & Valuers Association of Australia (AVAA)
- members of Property Investment Professionals of Australia (PIPA).
BMT Tax Depreciation services
BMT Tax Depreciation offers a range of services which different clients may find useful.
As mentioned above, they can help property investors to maximise their tax deductions by preparing a tax depreciation schedule.
This is a 40-year forecast which is put together by a qualified BMT quantity surveyor which takes into account the depreciable items in your property.
This includes the property’s plant and equipment, which covers items such as carpets, light fittings, air conditioners and hot water systems.
Depending on a number of factors, such as the age of the building and its use, you can then claim depreciation.
Because BMT’s specialists are qualified quantity surveyors, they have the necessary knowledge to maximise the claims you can make due to depreciation.
The BMT fee guarantee
As part of BMT’s service, they guarantee that your depreciation deductions will be maximised. If they aren’t able to provide deductions in the first full financial year claim which are worth double the fees they charge, you won’t have to pay a cent.
Other tax depreciation services
BMT Tax Depreciation also works with different groups when it comes to tax depreciation. These include:
If you’re an accountant you can use BMT to produce tax depreciation schedules for your clients, reducing your risk in the process and ensuring your client saves money. BMT supplies schedules in CSV format for easy uploading and updating, offers training sessions, and is affiliated with the Auctioneers & Valuers Association of Australia (AVAA), Royal Institute of Chartered Surveyors (RICS) and the Australian Institute of Quantity Surveyors (AIQS).
BMT can help property developers to sell their developments by providing prospective buyers with tax depreciation estimates. These estimates can help buyers to see what sorts of deductions they’d be able to make if they were to purchase part of your development as an investment.
Real estate professionals
Like property developers, real estate professionals can help maximise sales by providing potential buyers with tax depreciation estimates. These can help to show buyers an estimate of the deductions they’d be able to make on the property if they owned it. BMT can also review existing estimates for free to ensure your estimate is maximised.
Calculators and other benefits
BMT Tax Depreciation offers a live chat service to help you find out how they may be able to help you. They also have a range of calculators and tools on their website to help investors. These include:
- Tax Depreciation Calculator - This calculator can help you work out a rough idea of how much you could depreciation you could claim for your property.
- Construction Cost Calculator and Table - This calculator and table helps you work out an estimate of how much it might cost to construct a property in Australia. This includes different property types and levels of finish.
- BMT Rate Finder - BMT has a database of depreciable items and their depreciation rates for both the Diminishing Method Rate and Prime Cost Method.
Don’t be part of the 80% of property investors who aren’t maximising their depreciation allowances. Add BMT Tax Depreciation to your tax depreciation comparison today.
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