JUST BECAUSE 30 JUNE has been and gone, commercial investors and businesses don’t need to wait another financial year to obtain a tax depreciation schedule. Even if a schedule is ordered after the end of a financial year (FY), depreciation can still be back-claimed. [Read more…]
AS YOU WILL APPRECIATE, Negotiating is a learned skill – it’s not something you’re simply born with. However, it doesn’t matter how good you become, you always need to enter EVERY negotiation – using a Checklist, which has stood the test of time.
To help you … here’s the Checklist I personally use for each encounter. [Read more…]
IT MAY SURPRISE YOU to learn that new businesses grew at a record rate during the last financial year. And that’s because COVID-19 served up a whole host of new opportunities among the economic turmoil.
Apparently, there were 365,500 new start-ups along with 277,700 established businesses closing shop – delivering a net gain of 87,800 new businesses.
As encouraging as that may sound, these newcomers will face challenges going forward – given they began in a climate of low interest rates and government support.
Nonetheless, they will clearly add to the demand for suburban office space – as workers seek to avoid the grind of a long daily commute.
Add to that the large CBD firms currently decanting whole departments out to the suburbs – to also be closer to where their employees live.
Bottom Line: Every change (however disruptive) brings with it seeds of opportunity. Sometimes these are hard to recognise – but highly profitable, for those who do.
LEAVING ASIDE the effect of Covid has had on the general economy, the consequent drop in population growth and immigration will have a lasting impact upon … [Read more…]
THERE HAS BEEN much talk about Commercial Property emerging post-Covid. So, let’s quickly explore just how things are likely to unfold. [Read more…]
WHEN YOUR SPECIALIST QUANTITY SURVEYOR tells you that you can claim depreciation on almost anything, they mean it. [Read more…]
ON THE FACE OF IT … there’s no logical reason why you would.
Unless of course, you were intending to occupy the property when the current lease expires. In which case, the initial low rental is really of little (or no) importance to you. [Read more…]
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…]
IF YOU REMEMBER back to last May and June of last year, I explained that the economic decline caused by COVID was quite different from any other recessions.
What we experienced was a Medical Crisis with economic implications. As opposed to a total collapse of the Financial System – as you experienced during the GFC. [Read more…]
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.
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.
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.
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.
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.
ONLINE SHOPPING boomed during the lockdown. However, smaller retail outlets in strip centres and malls are actually struggling.
A recent study showed 37% of some 10,000 tenancies are run by small business owners – with just 1 to 3 outlets. And they mostly comprise food, health and beauty. [Read more…]
