Medical and dental practitioners often aren't considered small business operators in the traditional sense, and we often hear they would rather have their own teeth pulled than have to get too involved in their businesses accounts - after all they pay good people for that.
However, something we have discovered more recently is that many of these professionals are not aware that they could be claiming for depreciation of their "business premises" and it's fit out.
We have recently completed depreciation schedules for a number of professional medical partners who only discovered they had been missing out on this benefit when they switched to a new accountant. Under the former accountant, who had claimed only bits and pieces of depreciation, the partners had missed out on claiming hundreds of thousands of dollars in depreciation deductions over a number a years. Thankfully their new accountant knew how to remedy this and got in touch with our team for full schedules allowing them to back-claim for previous years.
The reports produced some great results for the group and they were very happy with the outcome. We can't help but think about how much had been missed under the previous accountant and would have remained unclaimed had they not changed.
To give you some further specifics, we have looked across all of the reports we have completed for medical and dental practitioners over the last 6 months. Some of these reports are for building and fit-out, and some for fit-out only, depending on who owned the building. Some are for large medical centres, and some for small operations with only a few rooms. Nonetheless, they provide for some interesting averages that we can share with you here:
Deductions available for each property included above did of course, depend on the specific circumstances and building. It can be seen however, that over the first 5 years of ownership, the claims that were available to our clients were huge.
Across the many reports we have prepared, the average deductions available over just the first 5 years were $289,369 for each property. Looking forward a little further, at the first 20 years of claims, the total average deductions for the reports we have prepared in the Medical and Dental Industries was $644,934.
Lastly, the most surprising part for some of our clients was that the cost of the report vs the benefit that can be achieved is great! The average cost for these reports was just $1,540, a pretty good return on investment if you ask us!
Please contact our Senior Depreciation Consultant Alex Konjarski on 1300 922 220 or via email at email@example.com.