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.
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:
When you buy a commercial property – such as a shop, factory or office – it's important to keep records right from the start. You can generally claim income tax deductions for ownership and maintenance expenses such as loan interest, and you may be eligible to claim a credit for the GST included in the purchase price and in other acquisition and running costs.
- 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.