Claim maximum deductions on your commercial property with BMT Tax Depreciation.

As a commercial property owner, you could be claiming substantial tax depreciation deductions every year in the order of tens, if not hundreds, of thousands of dollars. Commercial property depreciation can be claimed under two separate divisions: capital works (Division 43) and plant and equipment (Division 40).

Capital works deductions

Also known as building write-off or Division 43, this is the decline in value of the building structure.

Capital works (division 43) deductions are available for the building’s structure and any permanently fixed assets such as bricks, mortar and windows. You can claim capital works deductions if construction of your property commenced after 20 July 1982. However, if your property was built before this date there may still be deductions available to claim.

Here are some examples of typical depreciable items you could claim under a capital works deduction:

Commercial property:

Windows
Car parks
Doors, locks and door handles
Doors and windows
Bathtubs
Sinks and
toilet bowls
Swimming pool
Bricks and mortar

Plant and equipment depreciation

Plant and equipment, or Division 40, are items that can be easily removed from the property.

Plant and equipment (division 40) assets are items that can be easily removed from the property such as hot water systems, air conditioners, exhaust fans and security systems. Depreciation deductions for these assets are calculated based on the individual effective life of each item as set by the ATO and can be claimed by both owners and tenants.

As a commercial property owner, you can claim plant and equipment assets if:

  • owned by the property owner and not the tenant
  • the tenant vacated the building and left previous assets from a fit-out behind.

Here are some examples of typical depreciable items you could claim under a plant and equipment deduction:

Commercial property:

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Hot water systems
Air conditioning
Air conditioning
Commercial ovens
Commercial ovens
Fire control system
Fire control system

Plant and equipment depreciation

Plant and equipment, or Division 40, are items that can be easily removed from the property.

Plant and equipment (division 40) assets are items that can be easily removed from the property such as hot water systems, air conditioners, exhaust fans and security systems. Depreciation deductions for these assets are calculated based on the individual effective life of each item as set by the ATO and can be claimed by both owners and tenants.

As a commercial property owner, you can claim plant and equipment assets if:

  • owned by the property owner and not the tenant
  • the tenant vacated the building and left previous assets from a fit-out behind.

Why use BMT Tax Depreciation as a commercial property owner?

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Comprehensive reporting

Our commercial schedules can be split for multiple entities, tenants and assets purchased at different times.

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Complimentary estimates

We will provide a complimentary depreciation assessment before you proceed.

The BMT Guarantee

The BMT Guarantee

If we can’t find double our fee in deductions in the first full financial year, there will be no charge for our services.

How do I organise a schedule?

Organising a commercial BMT Tax Depreciation Schedule couldn't be easier.

1: Get a Quote

Request a quote for your commercial tax depreciation schedule.

2: Provide details

We’ll collect property details then contact your property manager or tenant to arrange access to complete a property inspection.

3: Claim deductions

Your schedule will be available within 7 days of all information being gathered. BMT can even forward your schedule to your accountant directly, saving you time.

Case studies

Commercial property owner case studies

Pub price:
$1.1 million
Office building purchase price:
$1.1 million
Dairy farm purchase price:
$3.6 million
Vineyard purchase price:
$4.5 million
Pub price:
$1.1 million
Office building purchase price:
$1.1 million
Dairy farm purchase price:
$3.6 million
Vineyard purchase price:
$4.5 million

FAQs

Commercial property owners FAQs

Commercial property owners FAQs

Can a commercial property owner claim any renovations completed by the previous owner?

Yes, a quantity surveyor will estimate anything in the property that is part of a previous renovation and calculate the deductions accordingly. This includes items that may not be so obvious, such as new plumbing, waterproofing and updated electrical wiring. For capital improvements to qualify for the division 43 building write-off, construction must have commenced within specific qualifying dates.

No, investment properties do not have to be new in order to attract a depreciation claim. Both new and old buildings will offer some depreciation deductions for commercial property owners and tenants so it’s always worth seeking the advice of a quantity surveyor.

A quantity surveyor will conduct the relevant searches to accurately determine the age of a building. This includes historical council searches regarding lodged development applications, as well as occupancy certificates and certified final inspections.

Previous tax returns can also be adjusted if a property owner or tenant hasn’t maximised their depreciation deductions in past years.

Using industry specific legislation, a specialist team completes a thorough site inspection and will assess your commercial property, to ensure every deduction is uncovered and maximised. This includes any fit-out installed, or assets removed during an upgrade or renovation. When construction work takes place, assets are, removed, or scrapped, from a property during its income production period, there is often remaining unclaimed depreciation that can be claimed in full. BMT are experts at determining this residual claim, and will make the necessary adjustments to your depreciation schedule, when any alterations are carried out.

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