It’s Nearly Tax Time! What You Didn’t Know About Maximising Tax Depreciation

With tax time approaching, we interview Brad Beer from BMT Tax Depreciation on some of the things most investors don’t realise about how to maximise their tax depreciation on their Perth Property investment.

Justine: Hi, my name’s Justine Valender from Investors Edge Real Estate. I’m here with Brad Beer, who’s the director from BMT Tax Depreciation. We service investors across Perth and we understand how important a tax depreciation can be to your cash flow.

Brad, can you tell the landlords at home why it’s so important to get a tax depreciation schedule done on a property?

Brad: Sure, Justine.  Thanks for having me today. A tax depreciation schedule basically saves the client a whole lot of money. A lot of investors–probably 80% of them– are not really maximising those deductions because they don’t really know what it is or what it means. Effectively, you’re able to claim against certain things in the property that are often missed, and there’s a lot of dollars that can be there that makes a big difference in the cost of owning the property–more cash flow out of it, basically.

Justine: Absolutely, that’s what we want. There’s a bit of a myth as well with older properties, that there’s no need to get a tax depreciation schedule done on it. Can you clarify some of those myths?

Brad: For sure. Something I hear every single day from someone is, “I’m thinking maybe it’s too old to claim depreciation,” and yes, older property doesn’t actually get as much but it still gets it. It’s just not necessarily much as a new property. The newer it is, the more it gets; but old properties still definitely gets it. We can have a look. With a few questions we can go, “What sort of property is it? How old actually is it? What’s the stuff in there like?” We can give an indication of what sort of deductions they might actually get before they go ahead and do anything. It’s really easy to find whether it’s going to be worth it.

Justine: Brilliant!  For the landlords that are watching at home, what’s the next step if they’re wanting to get someone out and get a depreciation schedule organised on their property?

Brad: Justine, it’s really simple. You just need to either find us on the Net or give us a phone call, and we’ll talk to you about your properties; see whether it’s going to get some deductions, and then from there, we need a few details. When did you buy it? What did you pay for it? Things like that. Prepare a report, give it to your accountant, and he’ll just keep making those deductions every year.

Justine: Brilliant! That’s what we want to hear. That’s great! Thanks a lot, Brad Beer. Appreciate that and thank you, guys, for watching. See you next time.

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