Imagine how one of your investor clients would react if you could tell them how to receive $3,536 in extra cash flow with little to no effort. With property depreciation this is no longer just an idle fantasy.
Amy’s Property Manager found this out herself when she recommended her client contact BMT Tax Depreciation to find out what depreciation deductions were available for her investment property.
Amy purchased a nine year old three bedroom house in an outer suburb of Sydney for $610,000 just over one year ago. Prior to making her depreciation claim Amy’s investment property was earning a rental income of $495 per week with a total income of $25,740 per annum, while her yearly expenses totalled $41,028. Towards the end of her first year owning the property Amy’s annual after tax outlay amounted to $9,631 or $185 per week.
Amy mentioned to her Property Manager that she was concerned about her cash flow. That’s when her Property Manager suggested she speak with BMT Tax Depreciation to find out what depreciation deductions she could claim for the building structure and the plant and equipment assets contained within the property.
BMT Tax Depreciation was able to complete a thorough site inspection and provided a detailed tax depreciation schedule showing the deductions available for her property for the next forty years, including $9,585 in the first year. The following table provides a summary of Amy’s scenario, both before and after depreciation was claimed.
A BMT Tax Depreciation schedule reduced Amy’s annual outlay for the property to $6,085 per annum or $117 per week, a difference of $68 per week or $3,536 per year.
“By claiming depreciation, I was able to significantly reduce the amount of tax paid on my investment property. I can’t thank my Property Manager enough for recommending BMT Tax Depreciation to me,” Amy said.
Recommend an expert
With just a few words you have the power to completely transform your investor clients’ cash flow situation.
BMT also offer a range of additional services and information to help Property Managers add value to their existing service such as face to face or webinar training sessions for your staff and clients, educational brochures and material that you can send on to your clients. To find out more visit BMT Tax Depreciation’s Property Professionals page by clicking here.
If you feel you have a client who we can make smile, please do not hesitate to contact one of our friendly staff on 1300 728 726 or visitwww.bmtqs.com.au.
Article provided by BMT Tax Depreciation.