16 March

Compare BMT Tax Depreciation with Capital Claims Tax Depreciation

BMT Tax Depreciation is not your only option

When it comes to quality depreciation schedules for residential and commercial investment property, BMT Tax Depreciation is one of just a few leading providers.

For over 13 years, Capital Claims Tax Depreciation has been delivering quality capital allowance and tax depreciation schedules to smart commercial and residential investors.

Our leading experts, Mark Wilkins (LinkedIn) and Alex Konjarski (LinkedIn) have a combined 40+ years assessing and reporting depreciation deductions for both commercial and residential property, for some of Australia’s most respected and recognised commercial brands.

Our tax depreciation schedules are ATO compliant, and ensure the maximum tax deductions are reported for every individual property.

Features of a Capital Claims Tax Depreciation Schedule:

  • Free initial consultation and feasibility estimate to ensure you will receive value in having a report prepared;
  • Individualised property details included in all reports;
  • Calculation and reporting of prime cost method of depreciation;
  • Calculation and reporting of diminishing value depreciation;
  • Graphing of both prime cost and diminishing value results for comparison;
  • All Division 40 deductions assessed, valued and reported;
  • All Division 43 deductions assessed, valued and reported;
  • Scrapping values (value of disposed assets) reported;
  • Low cost pooling reported – to allow for more aggressive claiming;
  • Low value pooling reported – to allow for more aggressive claiming;
  • Split reports for multiple owners – each owner receives their own report with their own totals for no extra charge;
  • Reports the full 40 year depreciable life of the property – and longer to include any new additions where applicable!– and longer to include any new additions where applicable!;
  • FREE report updates (for minor improvements, where cost information is provided);
  • Fast report turnaround – typically within 2 weeks (subject to property access);
  • Virtual inspection option available at a discounted rate for properties that qualify;
  • Bulk ordering discount available for developers, project marketers and volume investors.

When it comes to service and results, we confidently believe that Capital Claims Tax Depreciation represents some of the highest quality and best value reporting in our industry.

Our personalised, friendly service makes us one of the preferred providers for many of Australia’s leading property and accounting professionals.

Here is what some of our referrers and clients have to say about us…

Capital Claims have been a fantastic addition to our Prosperity Rewards program. Their industry expertise and commitment to exceptional service has meant their services are the most redeemed by our customers under the Prosperity program. Our rewards program exists to deliver value and exceed customer expectations, Capital Claims have been instrumental in delivering this to our customers.  – Kesree Jones, General Manager – Prosperity Program, Frasers Property Australia.

 

I have worked with Kylie and Nadine regularly for over a year and have always had a great experience. The team is easy to deal with, respond promptly and provide a high standard of service. I would happily refer anyone to Capital Claims!'­ – Jessica Carroll, Binnari Property

 

As an accountant, I found Capital Claims professional, priced well and very efficient. Their reports are first class. My client was also happy with the service and report.Michael O’Hehir, Principal, RSM

Key Depreciation Terms from table above:

Feasibility estimate

A free estimate that will provide a professional estimate of tax depreciation deductions (within a range), to ensure that the deductions you will be claiming with your tax depreciation schedule (in the first year alone) are more than double our fee. This is to ensure you receive value for our report straight up.

Prime cost method

The Prime Cost method of depreciation simply applies a consistent rate of tax depreciation to the starting value of the asset, so it depreciates at the same value every year for the life of the asset. This strategy means a more consistent value of deductions and returns are achieved for the investor over the life of the investment. Learn more about Prime Cost method of depreciation here, or download our complete Investment Property Depreciation handbook here.

Diminishing value method

The Diminishing Value of method of depreciation applies the nominated depreciation rate, continually, to the written down value of the asset each year. This method means that higher depreciation values are claimed earlier in the life of the asset. Learn more about Diminishing Value method here, or download our complete Investment Property Depreciation Handbook here.

Division 40

Division 40 Allowance refers the ‘plant and equipment’ items of an investment property. Typically this includes items such as blinds, curtains, stovetops, ovens, air conditioners, hot water systems, light shades, rangehood, carpet etc. Learn more about Division 40 Allowance here, or download our complete Investment Property Depreciation Handbook here.

Division 43

Division 43 Allowance (or “special building write-off”) refers to the depreciation of the construction component of a building. It encompasses such as things as bricks, tiles, gyprock, paint floorboards, aluminium window frames and doors. Learn more about Division 43 Allowance here, or download our complete Investment Property Depreciation Handbook here.

Scrapping values

“Scrapping” refers the residual value of assets that are disposed of. This often happens when items are replaced during a renovation or refurbishment. The residual value of these items are written-off in total in the year of disposal, and in some cases can total tens of thousands of dollars in immediate deductions for the property owner. Learn more about Scrapping here, or download our complete Investment Property Depreciation Handbook here.

Low cost pooling

Low-cost pooling describes the pooling of individual assets that have cost the investor up to and including $1,000 at purchase, per individual item. The low-cost pool of assets is depreciated at 18.75% in the year of purchase, and 37.5% in every year thereafter. Assets purchased for up to $300.00 may, or may not, be written off completely in the first year (dependent on the circumstances of the investor and the nature of the asset). Learn more about Low Cost Pooling here, or download our complete Investment Property Depreciation Handbook here.

Low value pooling

Low -value pooling describes the pooling of assets that have already been depreciated using the diminishing value method, and the written-down value (residual value) is now less than $1,000 per individual asset. The assets in the low-value pool are depreciated at 37.5% per year. Learn more about Low Value Pooling here, or download our complete Investment Property Depreciation Handbook here.

Split reports

Investment properties are often owned by multiple owners, who each are entitled to a share of the tax depreciation deductions reported, according to the ownership split. Our reports are split to report total deductions claimable by each owner, saving you and your accountant time (no further calculations required). Learn more about Split Reports here, or download our complete Investment Property Depreciation Handbook here.

Virtual inspection

We are able to complete virtual inspections for some properties, where extensive information is also available online and via the property owner/property manager/building inspector/tenant. Our experience shows that properties that are eligible are not disadvantaged by a virtual inspection, and maximum deductions are still reported. Learn more about Virtual Inspections by visiting our article 'Do I need an inspection for my depreciation schedule?'

About Mark Wilkins

Mark is an expert quantity surveyor, business owner, public speaker and property developer. With 20+ years experience in the construction and quantity surveying industry Mark’s specialist expertise have been sought in consultant capacity by professional bodies such as the National Institute of Accountants and the National Tax and Accountants Association, and he has presented at various property and tax seminars and expos nationwide. Mark holds a Bachelor of Construction Management from the University of Newcastle, is an affiliate member of the Australian Institute of Quantity Surveyors and a Registered Tax Agent.

View all posts by Mark Wilkins

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