This episode explores the benefits of tax depreciation schedules for property investors, emphasizing how these schedules can significantly improve cash flow. Against the backdrop of maximizing wealth through property investment, the discussion highlights the importance of claiming all available deductions. Bradley Beer, Managing Director of BMT & Associates, clarifies that depreciation is a tax deduction reflecting the wear and tear of a property's assets over time, and it should not be the primary reason for purchasing a property. For instance, a friend of Bryce received a $15,000 refund from previous tax years by getting a depreciation schedule done, which was then used as a deposit on another investment property. More significantly, the conversation addresses common misconceptions, such as the belief that older properties don't qualify for depreciation, clarifying that while structural claims may be limited for properties built before 1987, deductions can still be claimed on plant and equipment like carpets and hot water systems. The experts underscore the value of engaging a quantity surveyor to accurately estimate construction costs and identify all claimable items, ensuring investors minimize their tax liabilities and maximize their returns.
