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
Victoria unveils new payroll tax break
Victorian businesses that re-employ or hire new workers over the next two years are set to receive a new payroll tax credit, as the state government unveils a range of tax measures aimed at stimulatin...Read more
Tax refund
Is it time for a national EV tax?
The Australian Automobile Association has called for a national EV tax as state regulators continue to introduce taxes to offset fuel losses. ...Read more
Tax refund
Major bank exec convicted over fraudulent tax claims
A major bank executive has been convicted and fined after attempting to obtain tax refunds close to $25,000 in work-related expenses. ...Read more
Tax refund
Can Millennials maintain their lifestyle as the Boomers retire?
With considerably more people exiting the workforce at age 65 than entering at age 15, younger Australians could be forced to foot the bill for retirees, an analyst has said. ...Read more
Tax refund
Could NSW follow SA with an EV tax?
The NSW government will consider the introduction of an electric vehicle tax, just days after South Australia tried to pass a similar tax measure, the state treasurer has confirmed. ...Read more
Tax refund
ATO data reveals tax avoidance red flags
One particular Caribbean island has one and a half times more Australian bank accounts held by tax residents than there are actual residents on the island, according to new ATO data that shines a ligh...Read more
Tax refund
Australian mums taxed out of full-time work
Working mothers are facing disincentives to work more days due to a tax system that works against them, research has found. ...Read more
Tax refund
What to do if you missed the tax deadline
There are few worse feelings than looking at the calendar and realising it’s 1 November and you haven’t lodged your tax. If you find yourself in this predicament, your best option is to speak with...Read more
Tax refund
Victoria unveils new payroll tax break
Victorian businesses that re-employ or hire new workers over the next two years are set to receive a new payroll tax credit, as the state government unveils a range of tax measures aimed at stimulatin...Read more
Tax refund
Is it time for a national EV tax?
The Australian Automobile Association has called for a national EV tax as state regulators continue to introduce taxes to offset fuel losses. ...Read more
Tax refund
Major bank exec convicted over fraudulent tax claims
A major bank executive has been convicted and fined after attempting to obtain tax refunds close to $25,000 in work-related expenses. ...Read more
Tax refund
Can Millennials maintain their lifestyle as the Boomers retire?
With considerably more people exiting the workforce at age 65 than entering at age 15, younger Australians could be forced to foot the bill for retirees, an analyst has said. ...Read more
Tax refund
Could NSW follow SA with an EV tax?
The NSW government will consider the introduction of an electric vehicle tax, just days after South Australia tried to pass a similar tax measure, the state treasurer has confirmed. ...Read more
Tax refund
ATO data reveals tax avoidance red flags
One particular Caribbean island has one and a half times more Australian bank accounts held by tax residents than there are actual residents on the island, according to new ATO data that shines a ligh...Read more
Tax refund
Australian mums taxed out of full-time work
Working mothers are facing disincentives to work more days due to a tax system that works against them, research has found. ...Read more
Tax refund
What to do if you missed the tax deadline
There are few worse feelings than looking at the calendar and realising it’s 1 November and you haven’t lodged your tax. If you find yourself in this predicament, your best option is to speak with...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
