How to Claim Depreciation on Your Older Commercial Properties


ARE YOU FAILING to take advantage of the depreciation deductions available on your property because you believe your property is too old to warrant making a claim?

Your assumption is wrong and you could be missing out on valuable deductions.

A Common Mistake

As an investor, you may have made the mistake of thinking you will not receive deductions for an older property. Due to the date restrictions the Australian Taxation Office (ATO) place on you for claiming the available capital works allowance.

The reality is any property, no matter how old the building is, entitles you to valuable deductions in the form of depreciation.

This is because you are also entitled to claim depreciation for the plant and equipment assets contained within the property.

Current Legislation

The current ATO legislation states — the owner of any commercial property built before the 20th of July 1982 cannot claim the capital works allowance as a deduction. And the depreciation of plant and equipment is not restricted by age.

It is the condition and quality of each item which contributes to the depreciable amount.

If you have an older property that was renovated after the legislated dates set by the ATO, these renovations will still attract the capital works allowance.

BOTTOM LINE: When in doubt, you should always seek expert advice.

A specialist Quantity Surveyor will perform a site inspection of your property — to identify any deductions available from plant and equipment assets and for renovations to your property, regardless of age.

A tax depreciation schedule not only covers the capital works allowance, but also the depreciation of plant and equipment items as well.



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