With the end of financial year upon us, commercial property owners are encouraged to arrange a tax depreciation schedule and claim what could be thousands of dollars in depreciation deductions.
Australian Taxation Office (ATO) legislation allows the owner of any income producing property to claim depreciation in two ways, as capital works deductions or depreciation for plant and equipment assets.
Capital works deductions
Capital works deductions apply to the structural elements of a building such as:
These deductions are based on the historical costs of the building and with the exception of traveller accommodation can only be claimed on commercial buildings in which construction commenced after the 20th of July 1982. Capital works deductions for traveller accommodation can be claimed on buildings in which construction commenced after the 21st of August 1979.