Commercial building owners remain unaware of the taxation benefits their property can generate. One of the most beneficial, yet often missed deductions available is building depreciation.
As a building gets older and items within it age, they depreciate in value. The Australian Taxation Office (ATO) recognises this and allows property investors to claim deductions relating to the wear and tear on buildings and the fixtures and fittings within.
According to Bradley Beer, property expert and Managing Director of BMT Tax Depreciation, “claiming depreciation is the key to increasing cash flow on commercial properties.”
Building write-off can be claimed on the structure of a commercial building so long as construction commenced after the 20th of July 1982. In cases where construction commenced before this date, depreciation can still be claimed on fixtures and fittings.
“Many commercial property owners assume they are unable to claim depreciation on their property, or receive significant deductions because it is too old. However, there are still significant depreciation deductions available on the fixtures, fittings, plant and equipment contained within the property,” says Bradley.