\nOn today’s show we discuss more on depreciation schedules with\u00a0Brad Beer<\/b>\u00a0from BMT Tax Depreciation.
\nWe find out if they apply to properties of all ages and how long they last.
\n <\/p>\nRead the transcript here:<\/h4>\n
Kevin:\u00a0<\/b>\u00a0Brad Beer joins me once again. Brad, thanks again for your time. Last time we met, we discussed depreciation schedules. If you missed that, you can go and have a listen back to that chat where we talked about what the depreciation schedule was. On today’s show we discuss more on depreciation schedules with\u00a0Brad Beer\u00a0from BMT Tax Depreciation. We find out if they apply to properties of all ages and how long they last. Read the transcript here: Kevin:\u00a0\u00a0Brad Beer joins me once again. Brad, thanks again…<\/p>\n","protected":false},"author":176692471,"featured_media":2033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,10,25],"tags":[101],"class_list":["post-3758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bmt","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\n
\nMy question for you this time is how long does one of these schedules run? How long does it last?
\nBrad:\u00a0<\/b>\u00a0Thanks, Kevin, for having me back. If you buy a new property now, you get to make those claims for 40 years. Basically, the schedule will actually project it out for 40 years. You just take that back to your accountant every year. If you still have that property in 40 years, you\u2019ll still be making deductions based on that.
\nKevin:\u00a0<\/b>\u00a0One of the questions I\u2019m constantly asked by investors is does it depend on the age of the property as to how powerful that depreciation schedule, or even if it applies?
\nBrad:\u00a0<\/b>\u00a0This is one of the most common questions I get, as well, Kevin. What I\u2019d like to say is don\u2019t worry about the age; ask the question. Older properties don\u2019t get as much depreciation, but they definitely do get some.
\nWe will talk to you about your properties. The age will impact how much you get to claim, but you definitely get to claim it on older properties. Call, ask the question, and we\u2019ll give you an idea of what sort of deductions may be available prior to your going ahead and preparing it. That part is free.
\nKevin:\u00a0<\/b>\u00a0How often should these depreciation schedules be updated, Brad?
\nBrad:\u00a0<\/b>\u00a0Once you\u2019ve done it, it should be right. As we said, the depreciation schedule lasts for 40 years. The only thing is if you actually do some renovations to the property, then you may need to get it updated because you\u2019re changing the things that are there and you\u2019re changing what\u2019s available to depreciate.
\nKevin:\u00a0<\/b>\u00a0Is it just a renovation, or could it be any additions that are made to the property \u2013 if we put some new equipment in, for instance?
\nBrad:\u00a0<\/b>\u00a0Any renovations or any additions change what you\u2019re able to claim, so you want to ask about that.
\nKevin:\u00a0<\/b>\u00a0Is there any particular time that I should get my depreciation schedule done, Brad?
\nBrad:\u00a0<\/b>\u00a0When you need your depreciation schedule is when you\u2019re doing your tax return the first time after you\u2019ve bought this property, the first financial year. If you do it prior to the 30th<\/sup>\u00a0of June, our fee will be claimable and 100% deductible in the year you actually do it. Doing it before the end of the financial year is best. If you\u2019re doing an adjustment to your tax throughout the year, then whenever you buy the property is the time to get it sorted out.
\nKevin:\u00a0<\/b>\u00a0What about backdating? Can I do that?
\nBrad:\u00a0<\/b>\u00a0We find that the best part of 80% of investors are not maximizing this deduction properly. You can easily backdate a couple years of your tax return and go back and get some money from the tax office if you\u2019ve been missing out.
\nKevin:\u00a0<\/b>\u00a0It\u2019s well worthwhile. Would you do an assessment of my situation for me?
\nBrad:\u00a0<\/b>\u00a0Most definitely. We\u2019ll have a look at what you\u2019re claiming. Often a guess has been made or something has been provided by the developer at the time and it\u2019s not looking at maximizing your deductions. We\u2019ll have a look at how much you are claiming and see whether or not we can make it any better.
\nKevin:\u00a0<\/b>\u00a0What about the difference between a depreciation schedule and a valuation? Can you explain that to me?
\nBrad:\u00a0<\/b>\u00a0Yes, definitely, A depreciation schedule tells you what to claim off your tax as far as depreciation is concerned and relates to the cost of the building. Valuation is quite different. It\u2019s about what is the property is worth to sell at the moment.
\nDepreciation really relates to construction costs at the time of construction and the market value of some items within there at the time \u2013 as opposed to valuation, which is the total you could sell this property for at the moment.
\nKevin:\u00a0<\/b>\u00a0Finally, I just want to ask you this question: \u201cI\u2019m working with my accountant, and normally the accountant looks after the depreciation. Why should I get BMT involved?\u201d
\nBrad:\u00a0<\/b>\u00a0That\u2019s probably the second most common question. People think their accountant looks after it. Often they do; they\u2019ll send you off to someone like us to get it sorted out properly. The accountants are my friends. We work alongside them. We\u2019re a specialist just in maximizing this depreciation. We give them one of the numbers of the full tax return. Most of the time, the jobs to BMT actually come referred by the accountant.
\nKevin:\u00a0<\/b>\u00a0I could just say to my accountant, \u201cI want BMT to do this for me\u201d?
\nBrad:\u00a0<\/b>\u00a0We\u2019re happy to talk to the accountant before we go ahead and do anything, most definitely.
\nKevin:\u00a0<\/b>\u00a0My guest is Brad Beer from BMT Tax Depreciation Quantity Surveyors. The website is\u00a0BMTQS.com.au<\/a>.
\nBrad, once again, thanks for your time.
\nBrad:\u00a0<\/b>\u00a0Thanks again, Kevin.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"