Now more than ever Commercial property owners want to PAY LESS TAX!
Many property owners mistakenly believe that with the reduction, announced in the 2010 budget, of the depreciation rate on buildings reducing to zero from the next tax year, that there will be no depreciation deductions available for the property.
While this is true for the “building” there still will be depreciation available on the “fit-out” of the property and the “plant”. How much will depend on their values and what options you advise your clients to take.
In August the IRD and Treasury published an Issues Paper to address unintentional negative impacts of the budget on non residential properties, and to propose legislation to implement the required law changes. While these proposals are not finalised at the moment it is widely believed they will be accepted by the government (maybe with some minor changes).
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