We recommend BMT Tax Depreciation Schedules because we believe they provide a very professional service, they’re efficient and they use qualified Quantity Surveyors. They are certainly great to deal with and we know that if tax deductions are less than their fee, they won’t do a Depreciation Schedule, so they are extremely honest and ethical.
Update from BMT Tax Depreciation Schedules (Source: BMT):
Our property investor clients often ask the question whether it is best to purchase an old or new property in terms of the depreciation benefits the property will provide the owner.
Even the owner of a property constructed prior to 1987 can receive an average depreciation deduction of $4,899 in the first full financial year alone.
While owners of brand new properties will receive higher depreciation deductions, as shown by the average deduction of $12,680 in the first full financial year, it is always worthwhile asking a specialist Quantity Surveyor what can be claimed no matter how old a property is.
Owners of newly constructed properties are entitled to claim capital works deductions for the full forty years, while owners of older properties where construction commenced after the 15th September 1987 can claim capital works deductions each year for the remaining forty years.
Although the ATO places restrictions on capital works deductions based on the construction commencement date of the property, there are no such restrictions for plant and equipment assets. Their value is determined by the condition, age and quality of each asset. A fair value is determined for these assets and the effective life will start from the date of settlement.
Our data provides a reminder for investors to discuss the depreciation deductions they can claim for any property purchase. These deductions can be substantial no matter what age the building is and whether it is a house, a unit, a townhouse or a duplex.
If you have any questions on any aspect of property management, please don’t hesitate to call or send me an email… Jan Malmstrom 0408 769 053 or jan@investorsdirect.com.au
We look forward to hearing from you!