Here are the Case Studies mentioned in Episode 010 | Tax Depreciation of The Property Couch:

Tax Depreciation Case Study 1:

A $600,000 – $700,000 period home with a rental income of $22,880 per annum

An investor owns a period home purchased for between $600,000 and $700,000 with a rental income of $440 per week.
Expenses for their property such as interest, rates and management fees totaled to $40,950. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $9,880 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor to turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $3,655.
The following scenario shows the investors cash flow with and without the depreciation claim:

This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $219 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $149.

Tax Depreciation Case Study 2:

A $400,000 – $500,000 older villa with a rental income of $21,060 per annum

An investor owns an older villa purchased for between $400,000 and $500,000 with a rental income of $405 per week.
Expenses for their property such as interest, rates and management fees totalled to $29,610. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $7,930 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $2,935.
The following scenario shows the investors cash flow with and without the depreciation claim:

This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $104 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $47.

Case studies provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.

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If you were to ask an investor if they wanted to save $149 per week on a property, we can guarantee you that no one would say no…

BUT that’s exactly what too many folks are doing when they don’t use tax depreciation right! (Check out the case studies at the bottom if you don’t believe this number…)

Today we’re excited to be discussing this topic with the help of our good friend and first-ever guest to the show: Bradley Beer!

As the Managing Director of BMT Quality Surveyors, experts at tax depreciation, Brad explains exactly what tax depreciation is and how and when you can use it!

Buying a property for its depreciation, however, should NEVER be your main reason for investing!

Instead, we unpack the important depreciation factors you should be looking at…

And explain why 1985 and 1987 were very important years when it comes to tax depreciation.

We’ll also be explaining what quality surveyors do and hearing some true stories from Bryce and Ben!

So tune in now for the gold on tax depreciation! (Yes, we say tax depreciation way too much in the episode too 😉)

Free Stuff Mentioned:

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Brad’s case studies that he has prepared for the podcast can be accessed here! The first is a $600,000 – $700,000 period home with a rental income of $22,880 per annum and the second is a $400,000 – $500,000 older villa with a rental income of $21,060 per annum.
Interested in using BMT? Download the BMT Tax Depreciation Application Form here, or fill it out below:

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Here’s some of the gold we cover…

0:50 – Meet Brad Beer!
1:26 – What’s the benefit of a tax depreciation schedule?
2:00 – How Bryce’s friend benefited from one!
2:45 – Did you know you can get cash back?
4:00 – What do Quantity Surveyors do?
4:38 – Ben’s Franking Credit analogy
6:07 – WHY you should use tax depreciation
7:30 – This is why education is important!
8:09 – Why is 1985 and 1987 important dates?!
9:54 – So when do you get depreciation in a period home!?
10:55 – The challenge with depreciation is…
11:40 – Improving YOUR net yield
12:40 – The process to determine your tax depreciation!
14:50 – Renovation and depreciation!
16:00 – The lump sum scrapping approach
17:49 – Why you shouldn’t do tax depreciation after renovations
18:20 – Learn from Ben’s story!
19:40 – WHY it’s worth it to use BMT
20:15 – Some gold tax depreciation case studies!

Tax Depreciation Case Study 1:

A $600,000 – $700,000 period home with a rental income of $22,880 per annum

Tax Depreciation Case Study 2:

A $400,000 – $500,000 older villa with a rental income of $21,060 per annum

Free Stuff Mentioned:

Here’s some of the gold we cover…

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