{"id":3534,"date":"2015-03-05T01:00:31","date_gmt":"2015-03-04T14:00:31","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=3534"},"modified":"2015-03-05T01:00:31","modified_gmt":"2015-03-04T14:00:31","slug":"depreciation-and-property","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/depreciation-and-property\/","title":{"rendered":"Depreciation and property"},"content":{"rendered":"

 
\nBrad Beer<\/strong>\u00a0explains what depreciation is all about and how you can unlock thousands of dollars in your investment. What properties can benefit and when you should be getting one done. Is it ever too late if you have never done one? Brad has the answer.
\n <\/p>\n

Read the transcript here:<\/h4>\n

Brad Beer<\/strong>
\nKevin<\/b>:\u00a0 Brad Beer is a director of BMT Tax Depreciation, with over 15 years experience in the property depreciation, building, and construction industry. Because of Brad\u2019s substantial knowledge and specialist experience in property tax depreciation and construction cost consulting, he\u2019s regularly called on to comment on these issues and is, in fact, one of our experts at Real Estate Talk.
\nBrad, I thought we might just quickly talk about what is property depreciation?<\/b>
\nBrad<\/b>:\u00a0 Property depreciation is a tax deduction that\u2019s available to any property investor. What it means is when you\u2019ve got an investment property, it will help you to pay less tax.
\nKevin<\/b>: \u00a0How do I as an investor know how much depreciation I can get?
\nBrad<\/b>:\u00a0 How much depreciation you\u2019ll get will relate to the type of property you have. As a quantity surveyor, we work out those numbers and tell you exactly how much deductions there might be. Usually, our standard residential property is $5000 to $10,000 per year is pretty average.<\/b>
\nKevin<\/b>:\u00a0 This needs to be done in a special schedule. How do I go about organizing that?
\nBrad<\/b>:\u00a0 Basically, a quantity surveyor who specializes in depreciation will talk to you about your property, see what deductions may be there, inspect your property, look at what is in there, and work at exactly what deduction might be able to be claimed, and give that report to your accountant to help you make those deductions.
\nKevin<\/b>:\u00a0 That\u2019s something that BMT specializes in as tax depreciation experts. Can anyone do this for me?
\nBrad<\/b>:\u00a0 The reason you want to get a quantity surveyor involved is because it will have the relationship to the cost of construction, a quantity surveyor is the guy who estimates construction costs, but also a specialist in depreciation will make sure that you get everything you can out of the property.
\nKevin<\/b>:\u00a0 That\u2019s the role of a quantity surveyor?
\nBrad<\/b>:\u00a0 That\u2019s one of the roles of the quantity surveyor. That\u2019s the one we play at BMT. Traditionally, a quantity surveyor estimates construction cost of buildings, so we get all the plans, specifications, things on buildings to say how much concrete, how much steel, how much should it cost. Part of that comes across to the depreciation because it relates to the cost of construction of a building.
\nKevin<\/b>:\u00a0 Now, can this be done in the event of a new building? Can it be done before the building is constructed, or does it need to be done afterwards?
\nBrad<\/b>:\u00a0 You can\u2019t start making the clients until you actually have the property as an investment property making income for you. Normally, when you do that is when it\u2019s actually completed and you settle on it. You might want to get some estimate of what reductions might be there before you actually take a hold of the property or when you\u2019re making a decision to buy the property, but you actually effectively make the deductions once you take a hold of the property and use it as an investment property.
\nKevin<\/b>:\u00a0 As a property investor, if I\u2019m holding a number of properties or even one for that matter \u2013 it doesn\u2019t matter \u2013 and I\u2019ve never had the depreciation schedule done, is it ever too late?
\nBrad<\/b>:\u00a0 It\u2019s not too late. You can easily go back and amend at least a couple of years of your tax returns if you\u2019ve been missing out on some of the deductions. If it\u2019s really old and you\u2019ve owned it for a really long time \u2013 ten plus years \u2013 it may be hard to make it viable to get enough deductions out of it to make it worth it. But we\u2019ll have a look at that and ask you some questions about your property or your properties prior to you going ahead and doing anything.
\nKevin<\/b>:\u00a0 So it\u2019s worthwhile having an assessment done at that level. What would be the indicative cost of something like that?
\nBrad<\/b>:\u00a0 That part is free. We\u2019ll talk to you about your property, we\u2019ll talk to you about what deductions might be there based on what you\u2019re already doing, based on what sort of property it is, and we\u2019ll just go ahead and work it out at how much it can be if we think it\u2019s worth it.
\nKevin<\/b>:\u00a0 Finally, before we leave you at this point, Brad, can you just tell me what the process is involved in preparing a depreciation schedule?
\nBrad<\/b>:\u00a0 Yes, definitely. Kevin, the process is basically, we\u2019ll talk to you about your property to make sure it\u2019s worth it to start with. Once we do that, we go out, we do an inspection of your property, contact your property manager, talk to your tenant, go through, measure up, estimate how much is this building cost, what items do we need that we can claim as the deduction?
\nWe\u2019ll bring it back, we\u2019ll put it in to the program that works the numbers out and spits out basically a report that tells you exactly how much to claim every year in this depreciation to talk to your accountant, so he can plug that number into tax return and get you some more cash.
\nKevin<\/b>:\u00a0 Look, there are so many points that I want to cover with you, I\u2019d love you to come back at another time, Brad, if you could. I want to talk about how long does one of these depreciation schedules actually run for, how often should it be updated, and how does it differ from a valuation?
\nMy guest is Brad Beer from BMT Tax Depreciation. They are the quantity surveyors who specialize in tax depreciation. The website is BMTQS.com.au.
\nBrad, thanks again for your time.
\nBrad<\/b>:\u00a0 Thank you, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  Brad Beer\u00a0explains what depreciation is all about and how you can unlock thousands of dollars in your investment. What properties can benefit and when you should be getting one done. Is it ever too late if you have never done one? Brad has the…<\/p>\n","protected":false},"author":176692471,"featured_media":3047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-3534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\nDepreciation and property - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/depreciation-and-property\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Depreciation and property - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  Brad Beer\u00a0explains what depreciation is all about and how you can unlock thousands of dollars in your investment. 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