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Save thousands with property depreciation

3 min read

For many property investors, reducing tax is a key part of their investment strategy, yet surprisingly, many investors are missing out on a major tax deduction that could save them thousands. It’s called depreciation.

What is tax depreciation?

Over time, your investment property will experience wear and tear. The Australian Taxation Office allows Quantity Surveyors to calculate a deduction from this wear and tear so you can claim it in your annual tax return.

Depreciation deductions can be claimed under two categories:

  • capital works deductions
  • plant and equipment depreciation.

Capital works deductions refer to the building’s structure and items considered to be permanently fixed to the property such as kitchen cupboards, doors and sinks.

While plant and equipment assets are items which are easily removable from the property such as carpet, hot water systems and blinds.

What are the benefits of claiming depreciation?

Property depreciation is generally the second biggest tax deduction after interest and is considered a non-cash deduction, meaning you don’t have to spend money to be eligible to claim it.

Any income-producing property may be eligible for thousands of dollars in depreciation deductions each financial year, reducing your taxable income and boosting your cash flow.

How can you claim depreciation?

A tax depreciation schedule is the best way to ensure you get the biggest tax refund possible.

A depreciation schedule is a report that outlines all available depreciation deductions for your investment property. The schedule shows the deductions for the depreciation of the building structure and the items within it.

Having a depreciation schedule for your rental property has many lasting benefits that can help you build your wealth.

What’s the BMT Tax Depreciation difference?

We recommend BMT Tax Depreciation to prepare your tax depreciation schedule.  As a client of H&R Block, a BMT Tax Depreciation Schedule can be prepared for a reduced fee. This fee is 100 per cent tax deductible and H&R Block receives no financial gain from recommending BMT Tax Depreciation.

We’ve worked with BMT for over 10 years. Together, we’ve helped almost 30,000 mutual clients get the most out of their investment property by reducing assessable income and boosting cash flow.

The expert team at BMT has specialist construction cost knowledge, allowing them to find every deduction you’re entitled to. On average, BMT find residential property investors between $8,000 and $10,000 in deductions in the first financial year alone. A BMT schedule gives your accountant all the information they need to make accurate claims, for up to forty years.

To take advantage of the discounted fee as an H&R Block client, contact BMT Tax Depreciation.


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