COMMERCIAL OWNER’S SILVER LINING

 

A new law to deny depreciation on most buildings has come into play as of April 1, 2011. The ‘fit-out’ announcement means depreciation cannot be claimed on building structures including foundations, floors, external walls, cladding stairs and roofs. However, there is a silver lining for commercial property owners, allowing depreciation deductions on items within commercial buildings such as air-conditioning, alarms, ceilings, electrics, lifts, plumbing and security systems. Chris Leatham from PwC’s Property Group believes it makes sense that investors should be able to deduct the cost of these items over the course of their useful lives.

Source: The Dominion Post, 5 April 2011 (ET)


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