What are commercial plant and equipment depreciation deductions?

WHEN YOUR SPECIALIST QUANTITY SURVEYOR tells you that you can claim depreciation on almost anything, they mean it. [Read more…]

Handling Depreciation for Commercial Mixed-use Developments

YOU WILL FIND Commercial properties come in all shapes and sizes.

Office towers, warehouses, the local café, and farms are all examples of commercial properties. The flexibility and sheer size of commercial properties can offer investors the opportunity to own mixed-use commercial property.  [Read more…]

Commercial Depreciation Tips to Boost Your Cash Bottom-line

STRUGGLING TO WRAP your head around everything to do with commercial depreciation? 

Good thing is that you don’t need to know everything, that’s what the experts like BMT Tax Depreciation are for. The team has shared their top five commercial depreciation tips to help you claim more deductions. 

1. Factor Depreciation into your Purchasing decision

While considerations like your overall investment strategy and budget come first, depreciation is another important factor when deciding on your purchase. 

Depreciation will be one of the highest deductions you can claim from your investment property. It can be the make-or-break between a positive and negative cash flow, and often makes a significant difference to your back pocket. 

2. Understand Eligibility Requirements

Know what you can and can’t claim by getting a depreciation estimate completed by a specialist quantity surveyor. 

Factors that impact the eligibility of claiming capital works deductions include the construction or improvement date, and the structure or fixed asset type. For example, you could claim depreciation on a concrete driveway, but not on a gravel one. 

Eligibility requirements can be trickier for plant and equipment assets. Each plant and equipment asset has its own effective life, and this can change based on industries.

This means you may be eligible to claim depreciation on some assets longer than others. Some incentives that also apply to these assets such as the temporary full expensing policy are only available to businesses, not commercial landlords that don’t operate a business. 

3. Know what you can Claim Sooner

Depreciation differs between capital works assets and plant and equipment assets. Differences also apply between varying plant and equipment categories – a dishwasher doesn’t depreciate in the same way as a smoke alarm.  

The effective lives and rates of depreciation determine how much you can claim now and in the future. 

Let’s use a real example to demonstrate just how big a difference knowing this can make. 

4. Don’t fall for the Myths 

There are a number of myths surrounding depreciation in the commercial real estate market. Falling for these can result in thousands of dollars missed, so it’s important to get the facts and claim what you can throughout your property’s lifecycle. 

The first misconception is that a commercial property may too old to hold depreciation, but this is hardly ever the case.

Any commercial property where construction commenced after 20 July 1982 will allow the owner to claim capital works as well as any eligible plant and equipment assets. 

Even if the property was constructed before this date, capital works could still be available on any improvements made by the current or previous owner. For example, if a roof had to be replaced in 1995 then the current owner could still claim this deduction. 

The second myth is that 2017 legislation changes apply to commercial properties, but this isn’t the case.

An owner can still claim depreciation on previously-used plant and equipment assets they now own. This includes any un-deducted value on assets the owner removes such as a previous tenant’s fit-out. 

Bottom Line: The secret to claiming the highest depreciation deductions is found in consulting with a tax depreciation specialist. 

BMT has been operating in the commercial and residential industries for over twenty years and has helped hundreds of thousands of people pay less tax.

Do You Really Understand The Fundamentals of Commercial Depreciation?

AS YOU’RE PROBABLY aware, BMT Tax Depreciation has been providing depreciation services to commercial owners and tenants for over 20 years.

During this time, their team has ensured these businesses maximise these returns by claiming millions in tax deductions.

Despite being the only non-cash deduction you have available, many investors are not making the most of the opportunity – or in some cases, not even claiming it at all. [Read more…]

Did You Realise You Can Boost Your Commercial Investment Cash Flow through Scrapping?

RENOVATING A COMMERCIAL PROPERTY can have a number of benefits – like increasing value, improving the functionality and attracting new tenants. 

However, commercial property owners and tenants can literally throw away cash when they are renovating.  [Read more…]

Why Not Take Advantage of Record-breaking Incentives?

THE 2020-21 FEDERAL BUDGET introduced a number of new, temporary measures. The focus is to help boost the Australian economy out of this pandemic-induced recession, drive investment and to create more jobs. 

This budget announced record-breaking incentives that are now available for businesses located Australia wide.  [Read more…]

Handy Tool for Commercial Property Owners

COMMERCIAL PROPERTY OWNERS juggle so things every day … from negotiations with potential tenants to tracking income and expenses. 

BMT’s free,easy-to-use MyBMT portal is something every commercial property owner should have in their tool kit – because it allows them to manage their investment and depreciation needs with ease. [Read more…]

How to Really Boost Your Depreciation Claims

PROPERTY DEPRECIATION is one of the most reliable sources of bonus cash flow – for both commercial property owners and businesses. And site inspections are an essential step to claiming the most depreciation possible. 

When Site Inspectors from a specialist quantity surveying firm physically survey your property, they know what to look for. They ensure nothing is missed and total compliance is maintained.  [Read more…]

What are Capital Works Deductions for Commercial Properties?

UNDERSTANDING TAX DEPRECIATION lingo can sometimes be confusing – but as an investor, it’s important that you have a good understanding of the depreciation deductions you can claim.

This will ensure you’re getting the most out of your investment property. [Read more…]

How You Can Maximise Your Commercial Fit-out Returns as Owners and Tenants

WITH THE RIGHT ADVICE you can achieve thousands of dollars in depreciation deductions on commercial property fit-outs. No matter what the industry you are in, claiming depreciation will help maximise your cash flow.  [Read more…]

Capital Works Deductions Fully Explained

UNDERSTANDING tax depreciation lingo can sometimes be confusing but as an investor, it’s important that you have a good understanding of the depreciation deductions you’re entitled to claim – to ensure you’re getting the most out of your investment property.

As outlined by the Australian Taxation Office there are two categories that comprise depreciation deductions – division 43 capital works deductions and division 40 plant and equipment depreciation.  [Read more…]