Depreciation claims to be found everywhere

Depreciation claims to be found everywhere

Posted on Monday, February 23 2015 at 12:39 PM

A list of the unusual landmarks and structures that have generated additional cash flow for their owners through the use of tax depreciation schedules has been revealed by tax depreciation specialist BMT.

The world’s largest rocking horse in South
Australia, the Sydney Polo Club, and the iconic Melbourne Star ‘Observation
Wheel’ are just some of the unique landmarks and items for which tax
depreciation claims have been made to uncover savings.

“Servicing a large range of commercial property
owners across Australia has meant working with some unique, and sometimes
unusual, buildings in the process,” BMT managing director Brad Beer says.

“Many people would be surprised by some of the
plant and equipment inside these buildings which qualify for tax depreciation
deductions, allowing their owner to claim back significant amounts when lodging
their tax return.”

The Big Rocking Horse in South Australia, as an
example, stands at over 18 metres tall and attracts about 300,000 visitors every
year.

Though most non-residential buildings erected
before 1982 aren’t eligible to claim capital works deductions, the owners of
the Rocking Horse (constructed in 1981) were able to claim on much of the plant
and equipment that comprised the unusual structure.

According to BMT, there’s a common
misunderstanding among property owners and investors that older buildings won’t
qualify for any depreciation deductions at all.

“We hear property owners and investors tell us
time and again that they never considered making depreciation claims due to the
age of their building. However, even in the case of older buildings, there can
still be many pockets of savings due to the depreciation of plant and equipment
items,” Beer says.

“Each of these three properties were able to
generate tens of thousands of dollars in extra deductions for their
respective owners.

“Furthermore, there was no need for the owners
to outlay any cash in order to attain this additional cash flow, as
depreciation is a non-cash deduction meaning it does not require any expense to
be made in order for it to be claimed.”.

The owners of Melbourne Star’s 120-metre tall
Observation Wheel were able to claim on a number of the fixtures inside the ferris
wheel’s pods, which passengers ride to take in the 40 kilometre-plus views.

The horse stalls and shelters, dams, pumps,
silos, fencing and plethora of other horse-related paraphernalia were also
claimed by owners of the Sydney Polo Club, which has previously hosted The Bachelor contestants and assorted
visiting royalty.

BMT believes many property owners and investors
remain unaware of the extent to which they might be able to claim depreciation
on the plant and equipment assets in their own buildings.

 

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