We’ve helped our clients save billions.
Are you aware of the tax depreciation benefits of your commercial property?
Koste has developed CODE (Creating Optimum Depreciation Entitlements) reporting to assist commercial property owners with the management of Tax Depreciation through regular updates. Depreciation management is an ongoing process starting right from the moment when a property or business owner acquire the commercial property or business. Most businesses are missing out on billions of unclaimed Tax Depreciation entitlements annually from the ATO.
How do hotel clients benefit from Tax Depreciation and Depreciation Management?
Hotel clients can claim for the building portion which can be accelerated to 4% over 2.5% for residential property. Koste also assists the clients to claim for all the division 40 items and plant & equipment that are associated with the building, which increases their returns as they depreciate at higher rates compared to the building. For a hotel, we also look after the loose furniture and equipment that are used in the hotel rooms.
An annual CAPEX (short for capital expenditure) update, is for expenditure done annually or quarterly, or even monthly, where Koste analyzes this expenditure and depreciates it accordingly. Hotels are constantly doing expenditure on new furniture, maintaining assets, or renovating, so Quantity Surveyors will need to update the Depreciation Schedule to reflect this expenditure.
A balancing adjustment can be claimed for items disposed of and also for renovations where part of the building may have been demolished. In other words, this increases the returns as the remaining value of the item can be written off in the year of disposal.
Ideally you will want to have your schedule completed by the 30th of June. We do highly recommend you engage the services of a Quantity Surveyor sooner rather than later to avoid disappointment of missing out on making any claims for this current tax year!
If you have recently purchased an investment property or even if you have been a long time investor, give Koste a call to discuss how we can help you reduce your taxable income and improve your cash flow.