• Home
  • About
  • Like to Become a Contributor?
    • Your Current Expert Panel
  • Need Support?

Commercial Property Made Easy


  • Start Here
  • Expert Comments
    • Property Insights
    • Legal Matters
    • Finance
    • Tax Depreciation
    • Accounting Strategies
    • Superannuation Tips
    • Due Diligence
    • Valuer’s Viewpoint
  • Commercial Property
    • Offices
    • Retail
    • Industrial
    • Residential vs Commercial
    • Baby Boomers
  • The Economy
    • Interest Rates
    • Using Debt
    • Global Scene
  • Opportunities
    • Investment Opportunity
    • Development Opportunity
    • Your Potential Exposure
  • Bonus
    • Training Material
    • Investment Objectives
    • Buying Criteria
    • Negotiating Tips
    • Property Management
    • Key Consultants
  • Like to Contribute?
    • The Current Expert Panel
    • Contributor’s Agreement

What are Capital Works Deductions for Commercial Properties?

9 September, 2020 by Bradley Beer Leave a Comment

UNDERSTANDING TAX DEPRECIATION lingo can sometimes be confusing – but as an investor, it’s important that you have a good understanding of the depreciation deductions you can claim.

This will ensure you’re getting the most out of your investment property.

As outlined by the Australian Taxation Office there are two categories that comprise depreciation deductions – division 43 capital works deductions and division 40 plant and equipment depreciation. 

Capital works deductions are income tax deductions an investor can claim for the wear and tear that occurs to the structure of the property and items considered to be permanently fixed to the property. This includes any structural improvements that may have been made during a renovation within the relevant dates.

Common items in commercial properties, where you could capital works deductions include:

  • Bricks, mortar, walls, flooring, roofing and wiring
  • Sinks, tiles, basins and toilet bowls
  • Mezzanines
  • Ducting for air conditioning

As a general rule, any residential building where construction commenced after the 15th of September 1987 will entitle their owner to capital works deductions at a rate of 2.5% per year, for up to forty years.

However, with a commercial building, capital works deductions are available for an even larger time frame. They generally apply to commercial buildings where constructed commenced after the 21st of August 1984.

If your property was constructed prior to these dates, it’s still important to get in touch with a qualified quantity surveyor (such as BMT Tax Depreciation) – because these buildings will have often undergone some form of renovation, which can result in capital works deductions for you as the owner.

Bottom Line: For over 20 years, BMT Tax Depreciation has been the commercial depreciation specialist … and has completed tax depreciation schedules for a wide range of commercial properties including office buildings, manufacturing, shopping centres, medical centres and hospitality venues.

Why not Share this Page?

  • Share
  • Facebook
  • Twitter
  • LinkedIn

Filed Under: *Expert Panel, Industrial Sector, Market Sectors, Offices, Retail Sector, Tax Depreciation Tagged With: 9-step formula, arranging your finance, Australia, Buying Criteria, chris lang, commercial property investing, commercial property investment, commercial property made easy, commercial real estate investing, commercial real estate investment, controlling the valuation, due diligence, final judgement, Investment Objectives, locking in your finance, maintaining and upgrading, Property Management, sifting and sorting opportunities

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Why not join my 'Inner Circle' to ensure you don't miss the NEXT trend in Commercial Property?

We promise NEVER to share your details.

Trusted Consultants

Have you downloaded this free app?


How about a Masterclass ?

Like listening to a regular podcast?


PB-Patch

Featured Interviews on:

What we stand for

Hopefully, you will quickly realise that I'm NOT here to simply "push my own barrow".

Rather, everything here has been put together to provide you (as a serious Investor) with the very best insights into what you need to know ... in order for you to succeed with your Commercial property investing.

You see, the deeper your access is to all the key information and the more expert opinions you can learn from ... the more likely your ultimate financial success will be.

That said, you will discover everything you need right here – both readily available, and all in one place.

All the very best ... Chris.

Your Next Step

  Footer-2

Need an engaging speaker?



Are you in the process of planning your next Annual Conference?

Or maybe you have in mind one or more Training Workshops, for different parts of your team?

Either way, if you're looking for someone to help train you or your team on ... Commercial Property, Creative Marketing, Goal Setting or Negotiating ... Chris Lang can certainly fill that role for you.

Take a look at this short Video which will give you an idea as to the sort of training that's available.

Copyright © 2021 · Commercial Property Made Easy · All rights reserved.

Disclaimer      Privacy Policy

Copyright © 2021 · Metro Child Theme on Genesis Framework · WordPress · Log in