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.