Commercial Leases: Goodbye to Claw-back Provisions?

Clawbacks

LANDLORDS WHO PROVIDE lease incentives to tenants (including fitout contributions, rent free periods and rent abatement periods) often attempt to secure themselves by requiring tenants to repay the incentives.

They usually request this in the event the lease is terminated due to the tenant’s default. [Read more…]

Deductions to Get Your Motor Running

Car-Deductions

COMMERCIAL PROPERTY owners often require vehicles for use in the day-to-day operation of their business. And like other assets contained within a commercial property, vehicles can be depreciated and claimed as a deductible expense.

The Australian Taxation Office (ATO) lists most deductions available for motor vehicles under Table B of the 2014/4 Tax Ruling. [Read more…]

Do You Fully Understand Commercial Property Valuations?

property_valuation

WHEN PURCHASING A COMMERCIAL PROPERTY, the valuation is a key element in the financing process and in providing the buyer with comfort in their purchase price.

For the wise investor, it is important to have some understanding of how valuations are conducted.

Doing so will establish confidence that the valuation will not pose an issue with finance and also act as a basic tool, to verify a purchase price or estimate asset value for existing properties. [Read more…]

What’s Happening With Offices Around Australia?

.
Melbourne-Sydney

AS A COMMERCIAL PROPERTY investor it’s important for you to keep tabs all the separate markets around Australia.

To help with that, a recent market update by Credit Suisse places in Sydney and Melbourne CBD Offices as the best performers over the next three years.

However, Brisbane and Perth are expected to deteriorate further from where they are at present. [Read more…]

Your 4 Resolutions as a Commercial Property Investor

4Resolutions

AS THE NEW YEAR BEGINS, many commercial property owners might be formulating their annual New Year’s resolutions.

Commercial property owners often think about the ways they can reduce the costs of owning their property and running their business. However, when they do so, the deductions they can claim via depreciation are not always top of their list.

Many commercial property owners still do not maximise the depreciation deductions available from their Commercial properties. [Read more…]

How to Borrow to Buy a Property Within Your Personal Super Fund

AS YOU PROBABLY realise, this is not quite as simple as it may seem. And yet, all you need to do is follow some clearly defined procedures. [Read more…]

Will Lower Oil Prices Mean Improved Economic Growth?

.
Oil-decline

THE ANSWER is both Yes and No … depending upon which country you live in.

Oil-GDPLast weekend’s Financial Review reported an analysis by Oxford Economics, which predicted the likely effect upon GDP during 2015-16 … of oil being at $US40 Vs. $US84 per barrel.

And a quick summary of that is included over on the right. [Read more…]

Could This Bottle Be Hidden in Your Cellar?

 

WineBottle

IN NOVEMBER 2010, a bottle of Chateau Cheval Blanc sold at auction for over $335,000.

However, many winemakers and vineyard owners are currently unaware that they could be sitting on a similar amount of cash in the form of property depreciation.

Like fine wine, great wineries also age and this process can be just as lucrative as it is for a good vintage.

By claiming depreciation deductions due to the gradual wear and tear of the building structure and the plant and equipment assets within a winery, owners can receive substantial returns from the Australian Taxation Office (ATO).

Case Study

The following table provides an example of the depreciation deductions one vineyard owner could claim for a winery established in 1990:

Winery-data
As the table shows, the owner was able to claim $89,190 in depreciation deductions in the first full financial year alone.

Over the life of the property (forty years), depreciation deductions amounted to a whopping $1,284,240.

To ensure that depreciation deductions are maximised, winery owners are encouraged to enlist the services of a specialist Quantity Surveyor to prepare a tax depreciation schedule.

Renovated-pubs
The tax depreciation schedule will outline all of the deductions available for capital works (the structural elements).

The schedule will also show the plant and equipment items contained for the winery owners Accountant to lodge their claim with the ATO at tax time.

Accounting for Assets

During the process, a site inspection will be performed to ensure all of the plant and equipment assets found in the property are accounted for.

Some of the common plant and equipment found in wineries which can be claimed include oak barrels, fences, grape bins, presses, barrel racks, barrel washers, signage, carpet and corkers.

Bottom Line: Winery owners who would like more information about the depreciation deductions they are entitled to should contact one of the expert staff at BMT Tax Depreciation.

Beer

Liquidate Don’t Litigate

Liquidate-2

IMAGINE A SITUATION where you, through no fault of your own, are faced with a major lawsuit because one of your contractor suppliers has let you down and has gone into bankruptcy. [Read more…]

What About 3 Handy Apps?

 

Three-handy-depreciation-apps

SMART COMMERCIAL PROPERTY OWNERS, commercial property tenants and business owners want to improve their cash flow.

Claiming depreciation can reduce the tax paid for any commercial property at tax time.

BMT Tax Depreciation provide three valuable apps that every business or commercial property owner should be aware of. Let’s take a look at how these apps can help you. [Read more…]

How to Handle Your Annual Loan Reviews

Loan-Review

FOR COMMERCIAL PROPERTY INVESTORS with significant borrowings, one of the biggest headaches that you can encounter when dealing with banks are the annual reviews and short loan terms.

These facilities are costly in accounting expenses, time and money, particularly for sophisticated investors with more complex borrowing structures. [Read more…]