Amy’s Property Manager discovered this to be true when she recommended her client contact BMT Tax Depreciation for an assessment on the likely depreciation deductions that were available for her investment property.
Amy purchased a nine year old three bedroom house in an outer suburb of Melbourne for $610,000 just over one year ago. Prior to making her depreciation claim Amy’s investment property was earning a rental income of $495 per week with a total income of $25,740 per annum, while her yearly expenses totalled $41,028. Towards the end of her first year of owning the property Amy’s annual after tax outlay amounted to $9,631 or $185 per week.
Amy mentioned to her Property Manager that she was concerned about her cash flow. That’s when her Property Manager suggested she speak with BMT Tax Depreciation to find out what depreciation deductions she could claim for the building structure and the plant and equipment assets contained within the property.
BMT Tax Depreciation was able to complete a thorough site inspection and provided a detailed tax depreciation schedule showing the deductions available for her property for the remaining life of the property, including $9,585 in the first year. The following table provides a summary of Amy’s scenario, both before and after depreciation was claimed.
*The depreciation estimates in this example were calculated using the diminishing value method of depreciation
A BMT Tax Depreciation schedule reduced Amy’s annual outlay for the property to $6,085 per annum or $117 per week, a difference of $68 per week or $3,536 per year.
“By claiming depreciation, I was able to significantly reduce the amount of tax paid on my investment property. I can’t thank my Property Manager enough for recommending BMT Tax Depreciation to me,” Amy said.
Recommend an expert
BMT also offer a range of additional services and information to help Property Managers add value to their existing service such as face to face or webinar training sessions for your team or clients and educational materials that you can provide to your clients.
For more information, visit BMT Tax Depreciation’s page for property professionals online by clicking here.
