News
Do you own a residential or commercial investment property?
Posted: 04 May 2015
If so, are you claiming all the tax deductions that you are entitled to?
In a recent article (Issue 36, 2014) published by BMT Tax Quantity Surveyors and a recent release by the tax department, that2.5m property investors claimed deductions relating to their rental property in the 2011 – 2012 income year.
Of these, just over 1 million claimed an average capital works deduction of $2,029; whilst just over 1.7 million claimed an average deduction for plant and equipment of $1,139.
Based on their data from the BMT Tax depreciation schedules, the average claim in the first year is $10,100, and then $7,350 per year on average over the first 10 years of owning a property.
When we are preparing your tax returns and you have a rental property, we will be checking that you are firstly able to claim a capital works deduction (building) or plant and equipment depreciation (hot water system, carpets).
If nothing has been claimed previously in your returns, we will discuss your options.
| BMT deduction assessment | ||||
| Purchase price | First year deductions | Five year cumulative | Average annual cash return* | |
| New unit | $450,000 | $12,800 | $55,040 | $4,073 |
| Old unit (1970) | $450,000 | $6,900 | $28,980 | $2,145 |
| New 3 BR house | $600,000 | $11,200 | $48,160 | $3,564 |
| Old 3 BR house (1970) | $500,000 | $6,000 | $25,200 | $1,865 |
Significant deductions are usually available despite a property’s age.
*(First five years, calculated on a 37% tax rate).
The average annual cash return will vary depending on your tax rate in a particular year.
When we are preparing your tax returns and you have a rental property we will be checking that you are firstly able to claim a capital works deduction (building)or plant and equipment deprecation (hot water system, carpets), and if nothing has been claimed previously discussing your options.
Call or Contact us us if you would like some more information.
Brisbane: 07 3421 3421 (Rob & Sam)
Sunshine Coast: 07 54748955 (John)c
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