How to Really Boost Your Depreciation Claims

PROPERTY DEPRECIATION is one of the most reliable sources of bonus cash flow – for both commercial property owners and businesses. And site inspections are an essential step to claiming the most depreciation possible. 

When Site Inspectors from a specialist quantity surveying firm physically survey your property, they know what to look for. They ensure nothing is missed and total compliance is maintained. 

What is Commercial Depreciation?

Commercial depreciation is the natural wear and tear of a commercial property (and its assets) over time. Depreciation is deducted from the commercial owner’s or the business’s taxable income – meaning they pay less tax. 

The structural component of a commercial building is depreciated using capital works deductions. Common items depreciated using capital works deductions include walls, doors, windows and sinks. 

Other easily removable fixtures and fittings are depreciated under plant and equipment deductions. Some of the most common commercial plant and equipment depreciable items include partitions, furniture and smoke alarms. 

The only way to benefit from lucrative depreciation deductions is with a formal tax depreciation schedule. This schedule only needs to be completed once, and can be used each financial year going forward. 

What is a Commercial Site Inspection?

During a commercial site inspection, a specialist inspector will attend the property. They will analyse both the interior and exterior of the property and note down any depreciable assets, the workmanship and measure the space. 

Information gathered from the site inspection is then used to complete the most comprehensive tax depreciation schedule possible. The inspection also plays an important role in verifying any claim, in the event of an tax audit. 

When the commercial property owner and occupant are two different parties, claiming depreciation can be tricky. Each party must only claim what they own – however, only one site inspection is required. 

Bottom Line: The Site Inspector will make note of who owns what on the property, ensuring both the owner and tenant can claim the most. From there, BMT Tax Depreciation will create separate schedules.

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