commercial property depreciation report

[eyespy]

Do people get depreciation reports for their commercial properties ?

With residential, its usually only worth doing if the property is built after 1985 or has had siginificant renovation.

My commercial property is quite old (pre 1985) but tenant has had to reno the internal, and we have had to fix the roof which was costly.

wondering whether gettign a depreciation schedule would be of any benefit ?

 

[depreciator]

If the tenant did the internals, do they own it? They might be claiming depreciation.
Was the work you did on the roof claimed as 'repairs'?

 

[eyespy]

the renovation to the internals by the tenant - are along the lines of new ceiling, maybe new floors, painting - bc there was a fire - so i'm not sure if they own it, as some of these things cannot be taken away easily.

roof "repair" has been claimed as depreciation ......but from memory, accountant put it over 20-30 yrs so amount per yr is little.

 

[depreciator]

If the tenant paid for the work and they are still there, they would be claiming it. But when they leave, you will likely own it. Have a talk to your accountant about that.
With the roof, your accountant must have decided the work strayed more into 'improvement' vs 'repair' territory. That means 2.5%, sadly.

 

[eyespy]

thanks for your help and explanation depreciator !
will look into things if and when the tenant vacates.

 

[Scott No Mates]

thanks for your help and explanation depreciator !
will look into things if and when the tenant vacates.

Review the lease now so you are in position to understand the make good clause. In some instances the ownership of the fitout is transferred for $1 or you get a payout to undertake the make good