Discover the Depreciation Available Before You Buy

Crunch the Numbers for your Commercial property and Save

BEFORE PURCHASING a commercial investment property, make sure you crunch the numbers. The property may be more affordable if the right depreciation is claimed. 

Savvy investors will usually consider the potential return of the property, surrounding commercial infrastructure along with rental vacancy rates in the immediate area.

However, investors will often fail to consider the financial benefit of claiming depreciation deductions prior to making their purchase. [Read more…]

Why Commercial Landlords & Tenants Should Claim Depreciation

STARTING A BUSINESS can be a costly venture, but there are ways to reduce the costs involved. And whether you own a commercial property or are leasing the building, you could be entitled to thousands of dollars in depreciation deductions.

[Read more…]

How to Greatly Enhance Your Commercial Property Cash Flow

CLAIMING PROPERTY DEPRECIATION is paramount for commercial business owners. And yet, research suggests around 80% fail to maximise the deductions available to them.

As a result, they miss out on thousands of dollars.

With a commercial property, both owners and tenants are eligible to claim depreciation deductions simultaneously, so it’s important that both parties contact a specialist quantity surveyor to organise a tax depreciation schedule. 

A depreciation schedule will outline all available deductions over the life of the property. 

Under Tax Ruling 97/25, quantity surveyors like BMT Tax Depreciation are one of the only professions qualified to estimate construction costs for depreciation purposes.

Case Study: A $820,000 Commercial Office Building 

Justin’s company owns a commercial office building purchased for $820,000 and rented for $1,050 per week or $54,600 per annum. 

Expenses for the property including interest, rates, property management fees, repairs and maintenance total $57,088. 

Without depreciation, Justin’s company is experiencing a loss of $34 per week on the commercial office building.

Justin contacted BMT Tax Depreciation and found his business could claim $40,080 in depreciation deductions for the property in the first financial year alone. 

The following table shows Justin’s scenario before and after his company made the depreciation claim for the property.

By claiming depreciation, Justin improved the loss of $34 per week on the company’s property to a return of $198 per week. This improved the tax refund for the property by $12,024 in the first financial year.   

Maximise your tax return with property depreciation

As the case study shows, claiming property depreciation deductions can have a significant impact on a commercial business owner’s cash flow position. 

Bottom Line: A BMT Tax Depreciation Schedule details all available deductions over the lifetime of a property to ensure investors maximise their cash flow. Schedules have a one-off fee; and are totally tax deductible. 

Why Should You Invest in Commercial Property?

“This article by BMT Tax Depreciation is important
– because it simply confirms what I’ve conveyed in
a number of previous articles.”
   Chris Lang 

MANY INVESTORS tend to stay within their comfort zone when it comes to investing in property. And typically, this means they merely purchase residential houses and apartments. 

However, investing in commercial property has become more popular in recent times as investors look to diversify their portfolio and seek out affordable alternatives in a tightening residential market.

Unlike residential property, vacancy rates for commercial property are low and this combined with higher returns and depreciation benefits means there are several reasons to consider commercial properties as a potential investment.

We’ve taken a look at some reasons why commercial property is worth adding to your property portfolio. [Read more…]

8 Key EOFY Tax Tips for Commercial Property

WITH TAX TIME upon us, you’re probably preparing to visit your accountant – to complete your annual income tax assessment.

Getting your tax in order can be an overwhelming task, but when you have a commercial investment property it can seem even more complex. [Read more…]

Claiming Depreciation for an Industrial Warehouse

THERE HAS BEEN a rise in demand for industrial property in recent years, particularly for warehouse storage space. 

This is due to the so-called ‘Amazon effect’ which has resulted in an increase in online retailers requiring the space to store, pack and send orders. [Read more…]

Scrapping Can Boost Your Commercial Property Return

COMMERCIAL PROPERTIES are often renewed and transformed to suit the ever-changing needs of their occupants. 

Scrapping occurs when removed assets and structural elements within a building have a remaining un-deducted value. At the time of removal, as the owner of the asset, you can claim that remaining value as an immediate deduction in that financial year. [Read more…]

What Exactly is a Quantity Surveyor? 

THIS IS A QUESTION often asked by Investors.

A Quantity Surveyor (or QS) is a professional who specialises in estimating the value of construction costs and other assets. And Quantity Surveyors may get involved at various stages: prior to construction, during construction and post-construction.  [Read more…]

You’ll Reduce Fit-out Costs by Claiming Depreciation

COMMERCIAL PROPERTY OWNERS and tenants are often unaware they are entitled to claim deductions for the depreciation of many of the assets installed during the fit-out of a commercial property.

These deductions are important, as depreciation is a valuable source of hidden cash flow that will not only lower the burden of fit-out costs, but also assist with ongoing business expenses. [Read more…]

$20,000 Instant Asset Write Off Extended to June 2019

IN A MOVE that will help boost cash flow for small business owners, the Senate recently passed legislation to extend the $20,000 instant asset write-off to June 2019.  [Read more…]

Uncover Your Tax Benefits with Commercial Property Depreciation

DOES THE IDEA OF BUYING commercial property instead of renting your current business premises appeal to you? Or are you undecided whether to purchase a commercial investment over a residential property for your portfolio?  [Read more…]