Claiming deprecation is vital if you operate any sort of business, our services help improve your business’ cash flow, providing you with the resources you need to expand and grow.
It is still true that many commercial property owners and lessees miss claiming their depreciation deduction as they simply didn’t know about it.
Luckily, our clients De Chao and Wendy who own an office in Melbourne were entitled to claim over $56,000 in depreciation deductions in the first full financial year of ownership! See their results in our case study below.
Commercial Property Building Owners
Owning a commercial building can generate substantial tax depreciation deductions any included plant and equipment assets known as Division 40 and for capital allowance and depreciation of the building known as Division 43.
Also available is ‘scrapping’ of any assets removed from the commercial property for replacement during renovations. The key to utilising this nifty strategy is to ensure that your quantity surveyor can value and identify the age of those items prior to them being removed.
This can be done via a pre renovation inspection, or from photos taken of the assets prior to removal. Combined with the claims of your new assets, the scrapping of old assets makes a great contribution to keeping your tax down at the end of financial year.
Commercial Property Leaseholders
Leaseholders are eligible to claim for plant and equipment assets paid for and installed as well as capital allowance and depreciation for any structural additions or improvements made to a building.
‘When talking to many of our clients, it’s often a case of – they “just didn’t know that they were entitled to claim it”. Both commercial landlords and commercial tenants have the opportunity to increase cash flow and return on investment by claiming substantial commercial property depreciation deductions for the capital works and depreciation of their building, fit-out and business assets.’ – Mark Wilkins -Director, Capital Claims Tax Depreciation.
Case Study
Our clients De Chao and Wendy purchased an existing office located in Melbourne in August 2021 for $632,000.
De Chao and Wendy completed a fit-out valued at $186,525 in December 2021.
They were entitled to claim for Division 40, Division 43 plus the scrapping of the old assets which totalled $32,670.
De Chao and Wendy were entitled to claim in depreciation deductions:
‘De Chao and I were very surprised by our results. Particularly with being able to claim for the removal of the existing fit-out. We had no idea that we could claim for that and luckily, we spoke with Alex when we first purchased our property and Alex made as aware of this. We highly recommend Capital Claims.’ – De Chao and Wendy Huang, client.
How do I claim for my commercial depreciation deduction?
You need to organise a commercial depreciation schedule from a quality quantity surveyor. The methodologies used for calculating capital allowances and tax depreciation for commercial properties is quite different and often more complex as compared to residential properties.
Capital Claims Tax Depreciation are commercial specialists. We proudly deliver industry leading results for both commercial owners and leaseholders of hotels and accommodation, child-care centres, aged care facilities, professional office space, medical and dental suites, supermarkets, retail and other commercial properties.
Get in contact
We would welcome the opportunity to help you claim your depreciation deduction from your commercial property!
Call and speak to either Mark Wilkins or Alex Konjarski who are our commercial property experts on 1300 922 220. With over 40 years combined depreciation knowledge and experience Mark and Alex’s deliver maximum results for owners or lessees of commercial property.
You can also complete our free online simple “Get a free Quote” form for your commercial property. Our team will complete the research and email you with your personalised quote.
