How to claim the maximum Commercial Property Depreciation?

By Tyron Hyde | 22 Nov 2021

Suppose you own commercial or industrial real estate, including commercial office space, retail, hospitality, industrial warehouse, rented or used for income-producing purposes. 

In that case, you can claim the depreciation of your investment property against your taxable income. There are two types of allowances available: depreciation on Plant and Equipment and depreciation on Building Allowance

Plant and Equipment refer to items within the building like kitchen cabinets, bathroom fixtures, dishwashers, carpet & blinds, etc. 

Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income. 

List of depreciable plant & equipment and capital works deductions

How much will my Commercial Property Depreciation schedule cost? 

The cost of preparing a tax depreciation schedule varies according to the type of commercial property you've purchased, location, size, and numerous other factors. The price of depreciation schedules are individually quoted, and fees are 100% tax-deductible. Get an obligation-free online commercial depreciation quote

How much will I save? 

Each commercial property is different, and many varying factors must be considered when preparing a Commercial property depreciation schedule. With this in mind, we have launched the Washington Brown Commercial Property Depreciation Calculator to give you an estimate of potential deductions. 

Does Washington Brown offer a guarantee? 

Absolutely. We promise to save you twice our fee in the first year or the report will be free. This guarantee is based on the depreciation tax deduction calculated 12 months from your settlement date, as shown in your depreciation report. 

Will you need to inspect my property? 

Yes. The Australian Institute of Quantity Surveyors (AIQS) Code of Practice stipulates that site inspections are necessary to satisfy ATO requirements. At Washington Brown, our trained quantity surveyors ensure all depreciable items are noted and photographed. This guarantees you won't miss out on any deductions. The documentation can then be used as evidence in the event of an audit. 

How long will it take to complete my schedule? 

Your commercial depreciation schedule will take approximately 2-3 weeks to complete, as long as we can inspect your property without delay. 

Is my property too old to claim Property Depreciation? 

Commercial and warehouse depreciation are subject to varying cut-off dates. Refer to the depreciation rates for non-residential and manufacturing for your particular circumstance. 

My commercial property is renovated. Can I still claim? 

Yes. We will need to know how much you spent on renovations as an ATO obligation. Suppose the previous owner completed the renovations. You are STILL entitled to claim depreciation. In either case, where the renovation cost is unknown, we are fully qualified to estimate that. 

I bought my property three years ago. Can I still make a claim? 

Yes. Your accountant can amend previous tax returns up to 2 years back. There are some exceptions, so please contact your tax agent or the ATO for clarification. 

What are the main differences between Commercial and Residential Property Depreciation? 

There are three main differences which are outlined in our article on Depreciating Commercial Property. In summary, they are: 

  1. You can occupy the building and still claim depreciation. 
  2. Older buildings qualify for the building allowance. 
  3. Claimable items vary by industry and effective life. 

If you need a quote for your office property depreciation schedule - contact us today on 1300 99 06 12 


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Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent.  Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost. 
The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property.

Read more Expert Advice articles by Tyron
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

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