BMT for Property Developers
Depreciation Estimates, a valuable tool
As a property developer there are a range of tools you can use to help sell your development. One free tool that you may not be aware of is a Tax Depreciation Estimate which can show potential buyers the depreciation deductions their investment could be entitled to. A depreciation estimate can be completed at any time, even prior to commencement of construction.
BMT’s professional team will compile an estimate listing the potential depreciation deductions available for a particular property. You can then use the estimate to help promote your development in the marketing stage. Providing your selling agent with a depreciation estimate will help them to target property investors. Including depreciation deductions in your marketing material will make the property more attractive to investors. Intercorp Financial Strategies can arrange competitive finance packages. Our sister company .Rapattoni, are Certified Practicing Accountants and so are in the position to consider the taxation implications for any prospective buyer.
When do I need a Tax Depreciation Estimate?
The best time is now. BMT Tax Depreciation can complete a Tax Depreciation Estimate at almost any stage of a property’s development - this can be prior to, or during the marketing phase. Purchasers who then wish to order a full depreciation schedule can do so at a reduced price, as BMT have knowledge of the property.
How does a Tax Depreciation Estimate work?
A BMT Tax Depreciation Estimate makes the purchase more attractive to investors. It ensures that investors can easily assess their after-tax cash position if they were to purchase a particular property. The report will show the minimum and maximum range of depreciation, along with the expected depreciable plant and equipment items within the building and the building write off allowance for the structure of the building.
What do BMT need to complete a Tax Depreciation Estimate?
To order your free depreciation estimate simply supply BMT Tax Depreciation with:
- Purchase price list
- Copy of the strata plan (or draft)
- Schedule of finishes/list of inclusions, and
- Any associated marketing material, floor plans, construction costs, land values (if applicable).
Developers of commercial, retail, industrial or rental properties can all benefit from compiling a Tax Depreciation Estimate.
This report could be used as part of your overall assessment of the viability of your proposed investment. The report may also assist us in ensuring that your application for finance meets the NCCP guidelines in relation to our obligations for responsible lending.
If you wish to discuss this matter in greater detail please click here and we will contact you within 24 hours.