Increase your cash flow on commercial property

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Key facts

All commercial properties regardless of age or type are eligible for depreciation deductions

Each asset has different effective lives and depreciation rates relevant to their industry

Business owners can occupy the building and still claim depreciation

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.

Learn more about depreciation for commercial owners

Learn more about depreciation for commercial tenants

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

A BMT Commercial Property Tax Depreciation Schedule:

Lasts forty years

Lasts the forty year life time of the property

Industry specific legislation

Uses industry specific legislation to maximise all available deductions

Provides alternate methods

Includes alternate methods of depreciation based upon a client’s circumstances

Includes a property inspection

Includes a full property inspection by BMT’s professionally trained staff to ensure that every deduction is found

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.

Commercial office building purchased for $930,000

Scenario without 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

Scenario with a depreciation claim of $45,080
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

Difference of $183 per week

Assumptions and disclaimer

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.

Through claiming depreciation, Trish has improved the cash flow of her commercial property by $183 per week going from a negative to a positive cash flow situation.

In the above scenario, Trish’s tenant is also eligible to claim depreciation for the assets they have added to the property. Learn more about how tenants can claim here

How do I organise a schedule?

Engaging BMT Tax Depreciation to complete a commercial depreciation schedule for your property couldn’t be easier:

Get a quote

Request a quote for your tax depreciation schedule.

Property details

We’ll collect property details, then contact your Property Manager or Tenant to arrange access to complete a property inspection.

Claim deductions

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.

The BMT difference

As Australia’s leading property tax depreciation specialists, we know that every commercial property is different. With 12 offices nationwide and staff members based in every state and territory, BMT Tax Depreciation has the local knowledge, skills and professional approach that cannot be matched.

BMT’s depreciation experts work with each client to ensure that the maximum possible depreciation deductions are found. Contact BMT today on 1300 728 726 or complete this online application form and one of our team members will be in contact shortly.

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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.