Construction costs help you claim more from your investment
This article was provided by BMT Tax Depreciation.
Are you thinking about building a new investment property? With the numbers proving that new properties hold the most depreciation deductions, building new is a popular choice.
Understanding construction costs can provide a ballpark figure of what to expect when building an investment property. Guides such as the BMT Tax Depreciation Construction Cost Table can help you decide on the best build for your investment property strategy and budget.
Construction costs consider the building type, design, level of finish and location. The Gross Floor Area and Fully Enclosed Covered Area rates allow construction costs to be estimated down to the square metre.
A specialist quantity surveyor is one of the few professionals recognised as having the skills and qualifications to estimate construction costs for depreciation purposes. This knowledge ensures that you can claim the most in depreciation deductions on the structural component of the building.
The structure of a building is depreciated using capital works deductions. On a new build, capital works can be claimed for forty years and on average make up 85 to 90 per cent of total depreciation claims. Therefore, it’s crucial to claim this lucrative deduction correctly from the very start to avoid missing out on thousands.
BMT Tax Depreciation has prepared over 700,000 tax depreciation schedules, Australia wide. BMT’s construction cost expertise ensures you claim the most out of your investment property.
To learn more about depreciation and construction costs, Request a Quote or call BMT on 1300 728 726.