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  • Buying commercial premises

    When you buy or otherwise obtain a commercial property – such as a shop, factory or office – it's important to keep records right from the start.

    Commercial properties used in the running of a business are subject to capital gains tax. You'll need records of the date and costs of obtaining the premises so that you can work out your capital gain (or capital loss) when you sell it.

    Income tax deductions

    If your property is used to run a business or is available to rent for that purpose, you can claim tax deductions for expenses associated with owning it, such as interest on a loan to buy the property and maintenance expenses. Keep records of your expenses from the start, so you can claim everything you're entitled to.

    See also:


    If you buy commercial premises, you may be eligible to claim a credit for the GST included in the purchase price.

    You may also be able to claim GST on other expenses that relate to buying the property – such as the GST included in solicitors' fees and on-going running expenses.

    You can't claim GST credits if:

    • the seller used the margin scheme to work out the GST included in the price
    • you purchase property from someone who is not registered or required to be registered for GST
    • you purchase the property as a GST-free supply, or
    • you're not registered for GST.
    Last modified: 13 May 2015QC 23647