There May Be Cash Hidden Within Your Property

Hidden Cash

AS YOU ARE probably aware, property depreciation is mostly claimed by the owner of an income-producing property. And it’s for this reason, that many commercial tenants often miss out on the hidden cash available to them through depreciation.

Commercial tenants can claim depreciation deductions based on any fit-out or plant and equipment assets that they add to the property.

Tenants can claim depreciation deductions on all fit-outs while the owner of the commercial property is simultaneously able to claim a deduction on the building and any plant and equipment items they own.

Depending on How the Lease is Worded …

If a tenant vacates a building and does not remove the fit-out from the building at the end of their lease, the owner of the property may be able to claim any remaining depreciation.

Whereas, if a tenant’s lease stipulates that the property must be returned to its original condition at the end of the lease, then the tenant can benefit from claiming any remaining depreciation on the items removed and scrapped.

However, if a cash settlement for reinstatement is reached with the tenant (in lieu of actually removing the fittings) … this can muddy the water a little.

Either way, many landlords could stand to benefit — if handled properly.

What’s important is for you to consult a qualified Quantity Surveyor, whenever you deal with commercial property depreciation.

That way, you’ll ensure not only are maximum deductions are achieved … but they are also claimed correctly.

For more information on commercial property depreciation, visit BMT’s new Commercial Depreciation page by clicking here. Alternatively, you can speak with one of our expert team — by phoning 1300 728 726.


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