One question investors often ask about claiming depreciation on a rental property is ‘how will these claims affect Capital Gains Tax (CGT) when the property is sold?’ CGT can be a complex topic for investors to understand, particularly as the answer to the above question can really depend on the scenario of the individual property investor. Introduced on the 20th of September 1985, CGT is basically … Continue reading Seven capital gains and depreciation facts for property investors

Those considering purchasing an investment property will often ask whether a commercial or a residential property will provide them with more deductions in the form of depreciation. There are many important factors an investor needs to be aware of when making their choice between these two investment options. Types of depreciation, how the rules change Depreciation deductions apply to investment properties in two ways. Deductions … Continue reading The depreciation rules may change but the goal is the same

If you are investing or planning to invest in property for your retirement, there are a few things you need to consider. What’s your goal? No matter what your reason for investing in property it’s important you know exactly what your goal is. It could be to eventually live off the rent from your property portfolio, to subsidise your income, to have a nest egg … Continue reading Investing in property for your retirement

While property investing is one of Australia’s favourite past times, it doesn’t mean it’s always an easy ride. There are ups and down and certainly rewards to reap, but you do have to put in some ground work and planning to become a successful investor. While this can seem overwhelming at times – especially for first time investors – the good news is that you … Continue reading The nine experts you should include on your property investment team

Discover how your tax situation is transformed A recent analysis of schedules prepared by BMT Tax Depreciation highlighted that 22 per cent of schedules were for primary places of residence (homes) which the owners turned into rental properties. This demonstrates a popular trend occurring in the residential market, in which a significant number of home owners are recognising the additional value of renting out their … Continue reading Trend sees home owners becoming investors

Commercial property owners remain unaware of their depreciation entitlements. According to Bradley Beer, the Chief Executive Officer of BMT Tax Depreciation, around 80 per cent of commercial property owners don’t claim depreciation and therefore miss out on thousands of dollars. “Claiming depreciation is paramount for commercial property owners, as it can help to turn a property with a negative cash flow into a positive cash … Continue reading Three commercial property depreciation tips

The Australian Taxation Office (ATO) allows investors to choose between two methods of claiming depreciation on plant and equipment assets*. These are the diminishing value and the prime cost methods of depreciation. When an investor makes their depreciation claim, they can choose only one of these methods, so it is important for them to understand how this choice will affect their investment returns. Both the … Continue reading Pick the method to suit your investment strategy

In one of the most dramatic changes to property depreciation legislation in more than 15 years, Parliament has passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 as at Wednesday 15th November 2017, with the Bill now legislation. The new legislation means owners of second-hand residential properties (where contracts exchanged after 7:30pm on the 9th of May 2017) will be ineligible to claim depreciation on plant … Continue reading New depreciation legislation for Australian property investors