- Commercial Property Depreciation
- Types of Commercial Property Depreciation Services
- How much will I save?
- How much does a commercial depreciation report cost?
- Frequently Asked Questions
- Why Choose Washington Brown?
Property depreciation is the loss in value of an asset (building) over time due to wear and tear, physical deterioration and age.
Under Australian tax law, if you own commercial real estate or commercial property that is rented or used for income-producing purposes, you are entitled to claim the depreciation of that property against your taxable income.
There are two types of depreciation allowances available: depreciation on Plant and Equipment and depreciation on Capital Works Deductions. To maximise the tax savings on your investment property, you’ll need a professionally prepared Tax Depreciation Report or Tax Depreciation Schedule.
Washington Brown Quantity Surveyors are experts in property tax depreciation for investment properties. We have a specialist commercial property depreciation team dedicated to servicing commercial property investors’ needs.
Our commercial depreciation team have experience in a wide range of commercial property, including:
Our Commercial Property Services
Washington Brown provides professional depreciation advice and reports for commercial property buyers, owners and sellers. Our commercial property clients range from individual investors, institutional investors, superfunds and private companies.
We offer the following commercial depreciation services:
Commercial Property Buyers
- Review and advise on the existing contract of sale to ensure that the total tax depreciation potential is realised prior to exchange.
- Review and comment on the vendor’s existing depreciation schedule or registers to ensure the total tax depreciation potential is realised.
- Indicative Property Tax Depreciation Report to use in the preliminary feasibility analysis.
Commercial Property Owners
- Preparation and delivery of comprehensive property tax depreciation report.
- Detailed on-site property inspection – all depreciable items are noted and photographed.
Commercial Property Vendors
- Preparation of Indicative Property Tax Depreciation Report for inclusion in the Sale Information Memorandum (IM).
Frequently Asked Questions
We have put together a Commercial Property Depreciation Frequently Asked Questions section, which should help answer your questions about commercial property depreciation. If you have a specific question you want to be answered, call us on 1300 99 06 12 or email us.
What is Commercial Property Depreciation?
- Suppose you own commercial or industrial real estate, including commercial office space, retail, hospitality, and 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 Capital Works. 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 items 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 cost of depreciation schedules are individually quoted and fees are 100% tax deductible. Get an obligation-free Property Depreciation Quote now!
How much will I save?Each commercial property is different, and many factors must be considered when preparing a property depreciation schedule. With this in mind, we have launched the 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 expert 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 during 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 industrial properties are subject to varying cut-off dates. Refer to the depreciation rates for non-residential and manufacturing for your particular circumstance.
My commercial property has been renovated. Can I still claim?Yes. We will need to know how much you spent on renovations. This is 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 make that estimation.
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. Some exceptions exist, 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:
- You can occupy the building and still claim depreciation
- Older buildings qualify for the division 43 capital works deduction.
- Claimable items vary by industry and effective life
If you need a quote for a commercial property depreciation schedule quote – contact us today on 1300 99 06 12
Why Choose Washington Brown?
- We have been quantity surveying industry leaders for over 30 years and boast an extensive list of commercial real estate clients – see our extensive project experience
- Washington Brown is registered with the Australian Institute of Quantity Surveyors, and our staff are members of the Institute.
- Our team has extensive experience in property tax depreciation on all commercial property types, including hospitality, retail, office and warehouse properties and pub depreciation schedules.
- We have offices all around Australia.
- We guarantee to save you money!
Talk to one of our experienced consultants now! For an obligation-free discussion, call 1300 99 06 12 or email us.