Earn
How ‘The Block 2020’ refutes a common tax myth
An industry professional has found more than $14 million in total estimated depreciation on The Block 2020, disproving the myth that only new properties can claim depreciation.
How ‘The Block 2020’ refutes a common tax myth
An industry professional has found more than $14 million in total estimated depreciation on The Block 2020, disproving the myth that only new properties can claim depreciation.
Owners of income-producing properties can often claim sizeable tax deductions for the natural wear and tear that occurs to a building and its fixtures and fittings over time.
These deductions are known as property depreciation.
According to Bradley Beer, CEO of BMT Tax Depreciation, it is a widely held belief that only new properties hold depreciable value.
“We know from our own research at BMT that a good proportion of property investors miss out on claiming significant amounts at tax time, simply because they think that older properties don’t hold depreciation deductions,” said Mr Beer.
“This couldn’t be further from the truth. Renovated properties, such as those on The Block, can hold hundreds of thousands, and sometimes millions, of dollars in lucrative tax deductions.”
He pointed to the popular reality TV show where contestants have renovated five properties in the suburb of Brighton Victoria.
“Buyers of The Block properties are not only home owners, but also savvy property investors looking to build on their long-term wealth.
“With a total renovation cost greater than $14 million, this season of The Block will once again be a lucrative opportunity for property investors to take advantage of the 14 million-odd dollars in depreciation deductions,” said Mr Beer.
The average total depreciation is estimated at just under $2.9 million per property.
“Prospective buyers will factor this depreciation into their cash flow analysis, which will ultimately help them weigh up their investment decision.”
360A New Street, renovated by contestants Jimmy and Tam, holds the greatest depreciation tax deductions this season, coming in at an estimated maximum total of $3,225,879.
“The lucky buyers of The Block investment properties can claim this depreciation for the next 40 years, or up until 2060,” concluded Mr Beer.
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. ...Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. ...Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. ...Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. ...Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. ...Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. ...Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. ...Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. ...Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. ...Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. ...Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. ...Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. ...Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. ...Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. ...Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
