Save thousands with a commercial depreciation schedule
Wear and tear
Property depreciation is a tax deduction claimable by commercial property owners and tenants for the gradual wear and tear of a building and the fixtures and fittings within it over time.
Claimable
The Australian Tax Office (ATO) allows this deduction to be claimed by all income producing property owners each financial year.
Increases cash flow
A tax depreciation schedule prepared by an expert Quantity Surveyor helps property owners and commercial tenants to substantiate depreciation deductions in a tax return and increases the cash flow from the property.
Commercial owners and tenants can claim
One of the more interesting features with commercial property investing, is that both property owners and commercial tenants are able to claim depreciation deductions for the various assets they own.
Maximise deductions with a commercial depreciation schedule for your property
BMT have completed a number of commercial and industrial property depreciation schedules for a vast range of properties including:
- Hotels & motels
- Industrial buildings
- Warehouses
- Storage sheds
- Petrol stations
- Pubs & clubs
- Vineyards
- Preschools
- Retail complexes
- Shopping centres
- Restaurants & cafes
- Nursing homes & aged care facilities
- Manufacturing facilities
- Offices
- Medical centres & day surgeries
- Plus many more
Depreciation makes a significant difference to your cash flow
The following case study relates to a commercial office building and demonstrates the value a BMT Tax Depreciation Schedule adds.
Trish owns a commercial office building, purchased for $930,000 and is currently leasing this to a tenant for $1,400 per week ($72,800 per year).
Expenses (including interest, rates and management fees) total $78,500 per year.
Trish engaged BMT Tax Depreciation to prepare a tax depreciation schedule, the first year showed a total of $45,080 in deductions.
The following table outlines the cash flow benefits Trish received from making a depreciation claim.
|
|
|
| Annual income | $72,800 |
| Annual expenses | $78,500 |
| Pre-tax cash flow | -$5,700 |
| Total taxation loss | -$5,700 |
| Tax refund (tax loss* tax rate of 37%) | -$2,109 |
| Annual cost of the commercial property | -$3,591 |
| Weekly cash outlay | -$69 |
|
|
|
| Annual income | $72,800 |
| Annual expenses | $78,500 |
| Pre-tax cash flow | -$5,700 |
| Total taxation loss + depreciation claim | $50,780 |
| Tax refund (tax loss* tax rate of 37%) | $18,789 |
| Annual cost of the commercial property | $13,089 |
| Weekly cash outlay | $252 |
Case studies and figures are based upon tax depreciation schedules completed by BMT Tax Depreciation and do not represent any particular person or investment property scenario. The information provided is a general guide and does not constitute financial, legal or taxation advice. All figures are supplied as examples and may not represent your personal circumstances.
You acknowledge and agree you must undertake your own analysis and obtain independent legal, financial and taxation advice before using, relying or acting on any information supplied on this website.
Neither BMT Tax Depreciation, nor its directors, shareholders or advisors make any representation or warranty as to the accuracy or completeness of information found in these typical examples. Nor will they have any liability to you or any other party for any representations (expressed or implied) contained in, or any omissions from, that information.
The tax depreciation deductions in this case study have been calculated based on the diminishing value method of depreciation and are based upon a first full year of ownership. Marginal tax rates relevant to 2014 – 2015 financial year have been assumed.
How do I organise a schedule?
Engaging BMT Tax Depreciation to complete a commercial depreciation schedule for your property couldn’t be easier:
Request a quote for your tax depreciation schedule.
We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.
Your schedule will be available within 5 – 7 days of all information being gathered. BMT can even forward your schedule to your Accountant directly, saving you time.
Read our latest blog posts from BMT Insider
Read our latest articles for commercial property owners and commercial tenants
Australian winemakers uncork hidden cash flow
Why you should invest in commercial property
Tax deductions every agribusiness owner should claim
Discover more about our commercial property depreciation expertise
Take the next step or find out more about depreciation for commercial property
Speak with a commercial depreciation specialist on 1300 728 726 , email info@bmtqs.com.au, contact us now via LiveChat or simply request a quote and we’ll be in touch.
