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 that they own.
Dependent upon lease conditions, 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. However, 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.
It is important to consult a qualified Quantity Surveyor when dealing with commercial property depreciation to ensure that not only are maximum deductions achieved but that they are claimed correctly.
For more information on commercial property depreciation, visit BMT Tax Depreciation’s new commercial depreciation page by clicking here. Alternatively, you can speak with one of their expert staff by phoning 1300 728 726.
This article originally appeared online at www.bmtqs.com.au/mav-36-hidden-cash-for-commerical-property-tenants
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.