Commercial Property
Fit-outs, lease incentives and depreciation for commercial assets
44 expert articles in this category, written by Koste's Chartered Quantity Surveyors.
What is tenant abandonment depreciation?
Tenant abandonment depreciation occurs when a commercial tenant vacates and leaves their fit-out behind — the landlord can claim depreciatio…
What happens when a tenant leaves their fit-out behind?
When a commercial tenant vacates and leaves their fit-out behind, the landlord may be able to claim depreciation on those inherited assets o…
Can I claim depreciation if property is owned by a company?
Yes — a company that owns investment or commercial property can claim Division 43 capital works and Division 40 plant and equipment deprecia…
How is Depreciation Treated for Student Accommodation?
Depreciation for purpose-built student accommodation involves claiming deductions under **Division 40** for plant and equipment and **Divisi…
How Does Depreciation Work for a Data Centre?
Depreciation in data centres involves claiming deductions for the decline in value of assets under Division 40 (plant and equipment) and Div…
Can I Claim Depreciation on a Build-to-Rent Commercial Development?
Yes, you can claim depreciation on a build-to-rent commercial development. Under **Division 40** of the ITAA 1997, you can claim depreciatio…
What is a Commercial Property Trust & How Does Depreciation Work?
A commercial property trust is an investment vehicle pooling funds to purchase commercial properties. Depreciation in these trusts allows in…
Can I Claim Depreciation on a Mixed-Use Building?
Yes, you can claim depreciation on a mixed-use building in Australia. Depreciation applies to both commercial and residential parts under Di…
Can I Claim Depreciation on a Licensed Premises (Pub)?
Yes, you can claim depreciation on a licensed premises, such as a pub, under **Division 40** for plant and equipment and **Division 43** for…
How Does Depreciation Work for a Heritage-Listed Commercial Building?
Depreciation for heritage-listed commercial buildings is governed by **Division 43 of ITAA 1997**, allowing deductions for capital works on …
What is a Core and Shell Building and How is it Depreciated?
A core and shell building is a commercial property framework completed to a basic level, excluding tenant-specific fit-outs. Depreciation ap…
Can I Claim Depreciation on a Carpark?
Yes, you can claim depreciation on a carpark if it is part of your investment property portfolio. Depreciation claims typically fall under *…
Can You Claim Depreciation on a Petrol Station?
Yes, you can claim depreciation on a petrol station in Australia. Under **Division 40 of ITAA 1997**, plant and equipment assets like pumps …
How Does the ATO Treat Commercial Property for Depreciation?
The ATO allows depreciation deductions on commercial properties under **Division 40** for plant and equipment and **Division 43** for capita…
How Does Depreciation Work for Shopping Centre Owners?
Depreciation for shopping centre owners involves claiming deductions for the decline in value of both plant and equipment (Division 40) and …
What is the GST Treatment of a Commercial Property Sale?
The GST treatment of a commercial property sale in Australia depends on several factors, including whether the property is new or existing, …
Can I Claim Depreciation on a Serviced Office?
Yes, you can claim depreciation on a serviced office in Australia, but only on eligible plant and equipment assets and capital works you own…
Understanding a Commercial CGT Cost Base Report
A Commercial CGT Cost Base Report calculates the cost base for capital gains tax purposes on commercial properties. It includes acquisition …
What is a Base Building vs Fit-Out for Depreciation?
In commercial property, a 'base building' refers to the core structure and essential systems like the roof, walls, and plumbing, covered und…
Can I Claim a Commercial Building Extension?
Yes, you can claim depreciation on commercial building extensions under **Division 43 of ITAA 1997**. This covers capital works deductions f…
What is Make-Good in a Commercial Lease and Tax Treatment?
Make-good obligations in commercial leases require tenants to restore premises to their original condition. For tax purposes, these costs ca…
How Does a Lease Incentive Affect Depreciation?
Lease incentives can impact depreciation claims on commercial properties by altering the effective life and cost base of assets. Under **Div…
Can Commercial Tenants Claim Depreciation on Improvements?
Yes, commercial tenants can claim depreciation on improvements they make to a property. Under **Division 40 of ITAA 1997**, tenants can depr…
Can You Claim Depreciation on an Industrial Property?
Yes, you can claim depreciation on industrial properties in Australia. Depreciation deductions are available for both plant and equipment un…
How Does Depreciation Work for a Hotel or Motel?
Depreciation for hotels and motels in Australia involves claiming tax deductions for the decline in value of assets under **Division 40** an…
Can I Claim Depreciation on a Gym Fit-Out?
Yes, you can claim depreciation on a gym fit-out in Australia. Under **Division 40 of ITAA 1997**, you can depreciate plant and equipment li…
Can I Claim Depreciation on a Childcare Centre?
Yes, you can claim depreciation on a childcare centre in Australia. Depreciation can be claimed on both plant and equipment under **Division…
Can You Claim Depreciation on Strata Commercial Property?
Yes, you can claim depreciation on strata commercial properties in Australia. Under **Division 40** of the ITAA 1997, plant and equipment as…
What is the Depreciation Rate for Commercial Buildings?
In Australia, the depreciation rate for commercial buildings is generally 2.5% per annum under **Division 43 of the ITAA 1997**. This rate a…
How Does Depreciation Work for an Office Building Owner?
Office building owners can claim depreciation on both plant and equipment (Division 40) and capital works (Division 43) under ITAA 1997. Thi…
Can I Claim Depreciation on a Café or Restaurant Fit-Out?
Yes, you can claim depreciation on a café or restaurant fit-out under **Division 40** for plant and equipment and **Division 43** for capita…
Can I Claim Depreciation on a Medical Centre Fit-out?
Yes, you can claim depreciation on a medical centre fit-out under **Division 40** for plant and equipment and **Division 43** for capital wo…
How Does Depreciation Work for a Warehouse?
Warehouse depreciation involves claiming deductions for the decline in value of both the building (capital works) and assets within (plant a…
Can You Claim a Retail Tenancy Fit-Out as a Tax Deduction?
Yes, you can claim a retail tenancy fit-out as a tax deduction in Australia. Deductions are available under Division 40 for plant and equipm…
What is a Leasehold Improvement and How Is It Depreciated?
Leasehold improvements are alterations made by a tenant to a leased property to suit their business needs. Depreciation of these improvement…
Can I Claim Depreciation on a Commercial Building I Lease?
Yes, you can claim depreciation on a commercial building you lease in Australia. Under Division 40 and Division 43 of the ITAA 1997, lessees…
What is the Difference Between Residential and Commercial Depreciation?
Residential and commercial properties differ in depreciation rules under Australian tax law. Residential properties are subject to Division …
How Does GST Affect Commercial Property Depreciation?
GST can affect commercial property depreciation by influencing the cost base of depreciating assets. Under Division 40 and 43 of ITAA 1997, …
Can You Claim an Office Fit-Out as an Immediate Deduction?
Office fit-outs may qualify for immediate deductions under the instant asset write-off provisions, subject to specific criteria. Eligibility…
What is the Effective Life of Commercial Fit-Out Items?
The effective life of commercial fit-out items determines the period over which you can depreciate these assets under Division 40 of the ITA…
What is a Commercial Depreciation Schedule?
A commercial depreciation schedule outlines the tax deductions available for the decline in value of a property’s structure and assets. Divi…
Understanding Depreciation for Commercial Property in Australia
Depreciation for commercial property in Australia involves claiming deductions for the decline in value of the building (Division 43) and pl…
Can I Claim Depreciation on a Commercial Fit-Out?
Yes, you can claim depreciation on a commercial fit-out in Australia. Under Division 40 for plant and equipment and Division 43 for capital …
Can I claim depreciation on an office fit-out?
Yes, office fit-outs can often attract depreciation deductions if the fit-out is used for income-producing or business purposes. The claim d…
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