Both owners and leaseholders of commercial property can boost cash flow by claiming substantial tax deductions for depreciation.
Our clients Jono and Rani who own a Gym in Brisbane claimed over $100,000 in depreciation deductions in the first full financial year of ownership! See their results below.
Unfortunately, many owners and leaseholders of commercial property miss claiming their depreciation deduction as they simply didn’t know about it.
Commercial Property Building Owners
Commercial building owners are entitled to claim and can be substantial tax deductions for capital allowance and depreciation of the building known as Division 43 and any brand-new or existing plant and equipment assets known as Division 40.
In many cases totalling tens-of-thousands in depreciation claims with some totalling hundreds-of-thousands in depreciation claims.
By claiming the depreciation deduction per financial year, this has helped building owners with their cashflow!
Commercial Property Leaseholders
When a leaseholder takes over quite often, they complete their own fit-out that represents their business.
This allows for leaseholders to claim depreciation for any structural improvements or additions made to a building known as Division 43 plus for plant and equipment assets known as Division 40 that they paid for and installed.
By claiming the depreciation deductions per financial year, this has helped leaseholders with their cashflow!
Case Study
Our leasehold clients Jono and Rani converted an industrial warehouse in 2019 into a gymnasium.
Jono and Rani completed a fit-out valued at $625,880 that included purchases Division 40 plant and equipment items such as an ice bath, boxing ring, rowing machines, cross trainers, weights and weight bars, flooring, wading pool, sauna, yoga mats and sound systems.
‘Rani and I were super happy with our depreciation results. It helped us recoup some of the money that we spent on our renovation. I had no idea what depreciation was, our new accountant told us to see Capital Claims. Lucky, we did. Thank you I will highly recommend you to others.’ – Jono and Rani Quinn.
How do I claim for my commercial depreciation deduction?
Commercial properties are often more complex compared to residential properties.
You need to engage a depreciation provider that has expertise with claiming depreciation for commercial property. The methodologies used for calculating capital allowances and tax depreciation vary for different types of commercial property.
Here at Capital Claims Tax Depreciation, we have extensive experience and knowledge on depreciation reporting for all types of commercial properties. We have a dedicated commercial property team that achieves maximum deprecation results for both owners and leaseholders.
“Whilst the ATO does prescribe effective lives for commercial assets, quantity surveyors are qualified to revalue assets and ascribe new effective lives each time an asset changes hands. This means that a quantity surveyor is able to value an asset based on its actual condition and future use and attribute new values and effective lives, potentially increasing your tax deductions for depreciation and immediate write-off.” – Mark Wilkins, Director – Capital Claims Tax Depreciation.
How do I order my commercial depreciation deduction?
Call and speak to either Mark Wilkins or Alex Konjarski today who are our commercial property experts on 1300 922 220. They have over 40 years combined depreciation experience and knowledge.
Or, if you would like a personalised quote for your commercial property simply fill out our online quote form!
