BMT, Australia’s leading tax depreciation specialists, believes that real estate agents can strengthen their relationships with buyers by lifting the group’s early stage awareness of depreciation schedules and the savings they can deliver to property investors.
Research conducted by BMT suggests that 80 per cent of eligible property investors may not be taking advantage of depreciation schedules.
“Real estate agents are a critical component in the property-buying process and have a fantastic opportunity, before and after a sale, to enhance their relationships with clients by broadly informing them about how tax depreciation works and the benefits it provides,” said BMT managing director, Brad Beer.
“The result would be a win-win situation for both parties as the buyer maximises his cash flow and the agent strengthens his relationship with the buyer through the process.
“This process could even lead to a successful transaction with the buyer or repeat business,” said Brad Beer.
Tax depreciation is based on the concept that as buildings get older, items within the buildings wear out, or depreciate.
This depreciation can be treated as a tax deduction by any property owner obtaining income from the property, and a tax depreciation schedule can allow property owners to identify exactly how much they might claim.
A simple way property investors might learn of potential claims is through the use of a preliminary tax depreciation estimate.
“To aid investors in understanding what they might be entitled to claim, BMT offers free estimates of likely depreciation deductions for anyone interested,” continued Brad Beer.
“Also, as we approach tax time, property managers may additionally like to contact BMT to get a free estimate of likely deductions for their clients.
“This can provide an additional service to landlords and assist during the process of rental appraisals.
“BMT welcomes enquiries from agents and property managers regarding depreciation estimates and strongly believes that raising awareness of tax depreciation can be a win-win for all the parties involved,” concluded Brad Beer.