AS WE APPROACH the end of the financial year, many Commercial property owners often seem rather confused as to all the Depreciation deductions they might be entitled to.
To help you, here are the most commonly asked questions — purely to highlight just how depreciation can significantly bolster the overall cash return you can extract from your Commercial property.
BEING A COMMERCIAL property owner, the Australian tax system allows you to claim a deduction from your income.
And that relates to the wear and tear upon the structure of a commercial property, and the depreciation of the plant and equipment items it contains.
Depreciation is available to all property owners who generate an income from that property. But the secret is to make sure you maximise these deductions, to boost your bottom-line cash flow.
By maximizing your tax depreciation deductions every financial year can make a huge difference to the tax you pay. And it may even result in the ATO paying money back to you, at the end of the year.
IN SIMPLE terms, your Depreciation falls under two separate (but related) categories:
And not everyone is in a position to acquire a stand-alone property.
More often than not, you’ll be looking to purchase a “strata-title” Office or Warehouse — involving an Owners Corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your Depreciation claims.
However, by having a tax depreciation schedule professionally prepared, you can significantly enhance the overall return on your investment. [Read more…]
AS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.
And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.
There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]
Did you realise that some of the repairs you make to your Commercial property are NOT necessarily deductible against your rental income?
Often, it comes down to something as simple as timing. [Read more…]
Capture The Benefits
Depreciation is probably the most under-used weapon to legitimately shelter a significant portion of your property income.
And as a Commercial Investor, you really do have an unfair advantage over somebody investing in only residential property.
Therefore, let’s now set about dispelling a few of the common Myths concerning Depreciation.
[Read more…]
