The cost of upgrading your iPhone every year

The iPhone resale market in Australia is thriving through marketplace sites such as Gumtree & eBay raising the question of whether you should sell your old handset and splurge on Apple’s latest version each year, or hold on to it for a few years until technology changes make it worthwhile to upgrade to the next model.

It’s smarter to buy your phone outright

Many of us lock ourselves into financing plans with the major telcos so we can get our hands on the latest phone for “free”, but there is a smarter way to go about it. Tying yourself to a financing plan means you lose the flexibility to decide how often you upgrade to a new phone and in reality, that latest phone isn’t really “free”. You’re paying the mobile service provider a lot more for that handset over the course of your contract; instead, you can pay less overall and recoup some of your cost by buying  the new phone outright and selling your old one online when you’re ready for an upgrade.

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Reduce Fit-out Costs With Depreciation Deductions

Starting a new business can be quite daunting, particularly if you’re trying to do so within a strict budget.

On top of other initial start-up costs such as purchasing stock or merchandise, arranging insurance, budgeting for staff overheads and (if you don’t own the building) allocating funds to pay rent, there are often costs involved in installing assets to fit-out the new space before you can open the doors for business.

What commercial property tenants are often unaware of is that they are entitled to claim deductions in the form of depreciation for many of the assets installed during the fit-out of a property.

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Claim depreciation for older commercial investment properties

One of the main reasons commercial investors continually fail to take advantage of the depreciation deductions available from their property, is because they believe their property is too old to warrant making a claim.

According to Bradley Beer, the Managing Director of BMT Tax Depreciation, this myth needs to be dispelled.

“Often investors make the mistake of thinking they will not receive deductions for an older property due to the date restrictions the Australian Taxation Office (ATO) place on claiming the available capital works allowance. The reality is that any property, no matter how old the building is, will entitle its owner to valuable deductions in the form of depreciation. This is because the owner is also entitled to claim depreciation for the plant and equipment assets contained within the property,” said Brad.

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Three Handy Depreciation Apps for Business

Smart commercial property owners, commercial property tenants and business owners want to improve their cash flow. Claiming depreciation can reduce the tax paid for any commercial property at tax time.

BMT Tax Depreciation provide three valuable apps every business or commercial property owner should be aware of. Let’s take a look at how these apps can help you.

1. The BMT Tax Depreciation Calculator

This app is really handy when you are looking to purchase any new property, whether it’s a commercial office, an industrial building, a warehouse used for manufacturing or a residential investment property.

The BMT Tax Depreciation Calculator allows investors to get a quick depreciation estimate of the deductions that will become available for any property once it becomes income producing.

To use the calculator, investor’s only need to have some basic information about the property, including the property type, the construction type, quality of fishing, the floor area of the property in square metres, the estimated year of construction, when the property was purchased and the nearest major city.

Once the calculate button has been selected, the calculator will provide investors with an estimate of the minimum and maximum deductions they can claim for the first five years of owning the property.

To download the app for iPhone or Android devices, click here.

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Hidden Cash

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What may commercial properties be hiding from tenants?

Property depreciation is mostly claimed by the owner of an income-producing property. It is for this reason that many commercial tenants often miss out on the hidden cash available to them through depreciation.

Commercial tenants can claim depreciation deductions based on any fit-out or plant and equipment assets that they add to the property.

Tenants can claim depreciation deductions on all fit-outs while the owner of the commercial property is simultaneously able to claim a deduction on the building and any plant and equipment items that they own.

Dependent upon lease conditions, if a tenant vacates a building and does not remove the fit-out from the building at the end of their lease, the owner of the property may be able to claim any remaining depreciation. However if a tenant’s lease stipulates that the property must be returned to its original condition at the end of the lease, then the tenant can benefit from claiming any remaining depreciation on the items removed and scrapped.

It is important to consult a qualified Quantity Surveyor when dealing with commercial property depreciation to ensure that not only are maximum deductions achieved but that they are claimed correctly.

For more information on commercial property depreciation, visit BMT Tax Depreciation’s new commercial depreciation page by clicking here.

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Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT Tax Depreciation.  Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.

 

Find Out The Depreciation Available Before You Buy

Crunch the numbers for your commercial property and save

Before purchasing a commercial investment property, make sure to crunch the numbers correctly. That next bargain may actually be more affordable if property depreciation is claimed.

Astute investors will usually consider the potential return of the property, surrounding commercial infrastructure along with rental vacancy rates in the immediate area. They may also like to factor the current tenancy contract in place with historical growth.

They should also work out the tax deductible costs and other deductions involved in owning the property, such as property management fees when required, rates, interest, repairs, maintenance, fit-out costs and property depreciation.

These deductions add to the investor’s net cash return and every deductible dollar comes back to the owner at the marginal tax rate.

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Credit Card Debt

Top Tips for Tackling Credit Card Debt

Plastic fantastic – Flexible ways to reduce your credit card bill faster

Credit cards. Our plastic friends that are great at getting us out of a tight squeeze when we need them; like helping fill the car with petrol when cash is tight or picking up the weekly shopping if the pay transfer hasn’t hit the account yet! But these good mates can turn into nuisances when the amount owing has grown and you find yourself struggling to keep up with the minimum payments let alone trying to knock down the overwhelming balance.

So, when the bill has ballooned and you find yourself staring credit card debt in the face, what’s the best way to start paying off that balance? Follow these tips and you’ll see that figure falling before you know it.

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Tax – Chaos or Calm

The date June 30 can mean chaos or calm depending on how well organised you are. If this year is already looking like chaos maybe it’s time to consider ways for your office to work smarter as we head towards end of financial year.

Here are a few tips to create calm from Lan Nguyen from Success Accounting Group.

1. Check for missing receipts or documentation – these definitely cause stress and chaos

To create a calmer approach to 30 June; review all necessary receipts and documentation now so that you can present your accountant and the Tax Office with a complete set of documents to substantiate your claims and support your record keeping.

2. Review your financial positioning – If your profit and loss statements are unbalanced there’s a very good chance you are too.

The difference between good bookkeeping and excellent book keeping is balance… in the numbers in your profit and loss and business and credit card bank accounts. Don’t forget to check if the interest on the car hire purchase and business loans is separate from the principle. Are they fully reconciled and all transactions recorded accurately and completely? If not, go to point #1! This is the best time of year to do a stock take and write off any obsolete stock. Check the integrity of accounts receivable and accounts payable and write off any uncollectable debts before 30 June. If none of this makes sense – talk to your accountant A.S.A.P.

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Commercial Property Depreciation

Five Facts For Commercial Investment Property Owners

What commercial property investors should consider

Commercial investment property owners are often unaware they are entitled to make a claim for property depreciation. According to Bradley Beer, the Managing Director of BMT Tax Depreciation, around 80 per cent of commercial property owners don’t take advantage of property depreciation and therefore miss out on thousands of dollars.

“Claiming depreciation is paramount for commercial property investors. A depreciation claim can provide the difference in income for owners to turn a negative cash-flow property into an investment with a positive cash-flow,” said Bradley.

To help commercial properties owners earn more from their property, here are five facts about tax depreciation to assist them in the lead up to the end of financial year.

1. What is depreciation and what can be claimed?

The Australian Taxation Office (ATO) requires investors to report any income earned from a commercial property as part of preparing their income tax assessment. Commercial investment property owners are entitled to claim depreciation. Depreciation is a deduction available due to the wear and tear of a buildings structure (capital works deduction) and its fixtures and fittings (plant and equipment items) over time. It is considered a non-cash deduction, meaning investors do not need to spend any money to be able to claim it.

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