CLAIMING DEPRECIATION is paramount for commercial property owners and yet research suggests around 80% of owners fail to maximise the deductions available and therefore miss out on thousands of dollars in tax benefits.
BMT Tax Depreciation are able to help owners of commercial properties with a negative cash flow to turn this into a positive cash-flow asset.
This schedule below outlines all of the deductions an investor can claim for wear and tear which occurs over time to the structure of the building and the plant and equipment assets contained.
The following example shows how the owner of a commercial office building identified an additional yearly cash flow of $12,024 ... simply by claiming depreciation.
Let's explore the Case Study
In this scenario, the investor purchased the building for $820,000 and rented the property for $1,050 per week or $54,600 per annum. Expenses for the property including interest, rates, property management fees, repairs and maintenance totalled $57,088.
Without depreciation, the investor is experiencing a loss of $34 per week.
A full analysis showed there was a claim of $40,080 in depreciation deductions for the first financial year alone. The following table shows the owners situation after tax, with and without a depreciation claim.
By claiming depreciation, the property owner improved their loss of $34 per week to a return of $198 per week. This improved their tax refund by $12,024 in the first financial year.
Depreciation deductions, guaranteed
For investors thinking of about whether to obtain a depreciation schedule for their property, it is important to note that BMT Tax Depreciation offers a guarantee.
BMT's claim is that ... if they cannot obtain at least double our fee worth in deductions in the first full financial year claim, there will be no charge for their services.
Bottom Line: The cost of obtaining a tax depreciation schedule is 100% tax deductible. For commercial property owners seeking to improve their cash flow ... it's a win-win outcome.