My Commercial Investment Property

For non-residential investment properties

Including commercial, industrial, retail, hospitality

Why should commercial property owners pay more for tax depreciation services, when their properties are often easier to evaluate?

Some providers see commercial property owners as cash cows, just waiting to be milked. But just because a commercial property produces more money for you is no reason you should have to pay twice as much for a report—especially when it’s no harder to create!

I do not charge more for commercial properties. Instead, I custom-quote based on your property size, fitout and location. How much I think you’re prepared to pay does not factor into my quote—ever.

Are you the landlord or the tenant? Because both can claim the depreciation on the same property.

The ATO says that the person who gets to claim the depreciation is the “legal owner,” but the “economic owner” can claim too, if applicable.

That’s usually tenants with attached/fixed assets. For example, a vehicle washdown bay installed by the tenant can be claimed by the tenant. When they move out, the landlord can start claiming it (unless they make the tenant remove it).

In other words, while commercial property owners can claim depreciation on any assets they own on the property, the tenants can claim depreciation on any assets they installed during the lease period.

[bg color=”neutral”]

3 main types of tax depreciation reports for commercial properties

  1. Fitout only

    Typically, but not limited to, the fast food industry; this report is for where you buy the lease to operate a franchise on the umbrella company’s premises.

    Some examples that we do a lot of work for include franchises like Red Rooster, Brodies, and Dominos. These properties generally contain Division 40 items only, and are claimed by the tenant. E.g.:

    • Carpet
    • Aircon
    • Furniture
    • Cooking appliances
    • EFTPOS
    • Security systems
  2. Building only

    Typically industrial buildings or commercial offices. We prepare the tax depreciation report for the Division 43 items, claimed by the Landlord. E.g.:

    • The building
    • Hardstand
    • Landscaping
    • Renovations
    • Body corp works, etc
  3. Building + fitout

    Typically industrial buildings or commercial offices. We prepare the tax depreciation report for the Division 40 and the Division 43 items. E.g.:

    • The building
    • Hardstand
    • Landscaping
    • Renovations
    • Carpet
    • Aircon
    • Furniture
    • Cooking appliances
    • EFTPOS
    • Security systems
    • Shared/common items*

Often, commercial properties are in a body corporate setup. This means the shared common items are also tax depreciable. We just need to know what share is yours, and that it’s needed for “income producing purposes.”

[/bg]

Tax depreciation calculator

You may have found tax depreciation calculators on other websites. These look good, and are helpful for residential reports, but they are pretty much useless when it comes to commercial ones. This is because commercial properties themselves can be vastly different. For instance, what would the point be in seeing the estimated deductions for a 4000sqm potato chip factory when you have a hole-in-the-wall cafe?

Because commercial properties vary so greatly, the only way to accurately know how much depreciation you’ll get is to ask for a customised quote. Send me an email or use the contact form here, and I’ll do a direct comparison with similar properties recently completed. I’ve worked on commercial properties great and small, and everything in between.

[bg color=”neutral”]

5 easy steps to getting it sorted

  1. Get a no-obligation free assessment of your property to see if it’s worth it
  2. I’ll send you a quote + sample report + a guaranteed minimum per annum deduction amount
  3. You supply some basic information about the property
  4. One of our Quantity Surveyors will inspect your property
  5. We prepare the report and send a copy to you and your accountant.
[cta]

BTW: if you’d like more information about how we compare to our competition, go to our competitors page and see why you should be careful with the provider you choose.

[/bg]