Commercial Vs Residential Property Depreciation

OFTEN INVESTORS considering purchasing an investment property will ask whether a commercial or a residential property will provide them with more deductions in the form of depreciation.

As you'll appreciate, there are many factors an investor needs to be aware of when making their choice between these two investment opportunities. Let's take a look at just some of the differences.

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Claim More From Your Home Business This Tax Time

IT'S ESTIMATED that close to one million businesses in Australia are home based and this sector is considered to be one of the fastest growing business sectors.

For those who choose to operate a business from home there are many benefits including a better work-life balance where you can adjust your hours to suit the needs of family or your busy lifestyle and the ability to avoid any costs involved in renting a space for your business.

One of the biggest benefits that often goes unrealised by those who work at home, is the opportunity to claim deductions for any of the depreciable assets used for the purpose of operating the business.

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Reduce Your Fit-out Costs Using Depreciation Deductions

STARTING A NEW business can be quite daunting, particularly if you're trying to do so within a strict budget.

On top of other initial start-up costs, such as purchasing stock or merchandise, arranging insurance, budgeting for staff overheads and (if you don't own the building) allocating funds to pay rent, there are often costs involved in installing assets to fit-out the new space before you can open the doors for business.

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Renovate and Flourish

MELBOURNE IS WELL KNOWN for its amazing selection of shopping, dining and entertainment. Consequently, more and more commercial property owners have joined the renovating bandwagon to produce popular hotspots for both local residents and those visiting.

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Depreciation: 3 Tips to Know

SURPRISINGLY, most Commercial property owners still remain unaware of their full depreciation entitlements.

In fact, around 80 per cent of commercial property owners don't claim depreciation; and therefore, miss out on thousands of dollars.

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Deductions If You Own Hotel or Motel Accommodation

A RECENT PROPERTY OUTLOOK by Colliers International and JLL Hotels & Hospitality Group has predicted that 2016 will be another robust year for Australian hotel and motel owners.

According to John Kenny, the Chief Executive Office of Colliers International Australian and New Zealand, strong consumer confidence is driving demand resulting in increased hotel real estate activity during 2015 and this is expected to continue in 2016.

"Confidence is having a positive impact across the property sector and this optimism is starting to flow through to several of our occupier markets, as businesses become more confident," he said.

As demand for hotel and motel properties grows, it is important that owners of these types of properties understand the deductions they are entitled to claim.

Often the owners of these types of properties fail to claim the full amount depreciation deductions they are entitled to.

By failing to take advantage of the maximum deductions available, owners of hotels and motels could potentially be missing out on thousands of dollars.

What is depreciation and how will it assist hotel and motel owners?

The Australian Taxation Office (ATO) allows the owners of income producing properties to claim depreciation deductions relating to the wear and tear of the building structure and the plant and equipment assets it contains.

You could be missing out on:

By claiming depreciation, hotel and motel owners essentially will reduce their taxable income, therefore they will pay less cash. What's more, the fee to obtain a tax depreciation schedule outlining all of the deductions available to be claimed is 100% tax deductible.

 

Tax Benefits for Collins & Pitt Street Farmers

MANY COMMERCIAL PROPERTY investors often own significant rural properties -- both for profit and pleasure. As such, we thought it important to ensure they're aware of the full tax benefits available.

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Depreciation Can Be Rather Accommodating

MORE AND MORE, Baby-Boomer investors are showing an interest in what is called "Traveller" accommodation.

Owners of income producing properties can generally claim both capital works and plant and equipment deductions. However when claiming for traveller accommodation, it's even more important to seek advice from a Quantity Surveyor.

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You Can Write-off Up to $20,000 Immediately

THESE TYPE OF DEDUCTIONS mean an immediate improvement in your profit.

As part of the May 2015 federal budget, the Australian Government announced that small businesses with an aggregated turnover of under $2 million would be entitled to claim a $20,000 instant asset write-off.

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“U Can’t Touch This”

MC HAMMER'S HIT SONG of the early 90's resonates when thinking about the main reasons people resist investing into their superannuation.

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New Tax Ruling 2015/2

THE AUSTRALIAN TAXATION OFFICE has released a new tax ruling effective from the 1st of July 2015.

Replacing Tax Ruling 2014/4, Tax Ruling 2015/2 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.

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