Commercial property owners can claim several expenses as deductions when filing their taxes. Here are some common deductions that commercial property owners may be eligible for at tax time:
Property management fees: The fees paid to property management companies or property managers for their services in managing and maintaining the commercial property.
Repairs and Maintenance: The costs associated with repairs, maintenance, and general upkeep of the commercial property. This includes expenses for fixing plumbing, electrical systems, HVAC systems, and other structural components.
Insurance premiums: The premiums paid for insurance coverage on the commercial property, including property insurance, liability insurance, and any other relevant policies.
Interest on Loans: The interest paid on loans or mortgages taken out to finance the purchase, improvement, or maintenance of the commercial property.
Depreciation: Commercial property owners can claim deductions for the depreciation of the property over time. This deduction allows owners to account for the wear and tear or obsolescence of the property and its assets.
Legal and professional fees: Fees paid to solicitors, accountants, or other professionals for services related to the commercial property, such as lease reviews, tax preparation, or legal advice.
Utilities: The costs associated with utilities, such as electricity, water, and gas, that are directly attributable to the operation of the commercial property.
Advertising and marketing expenses: The expenses incurred for advertising the commercial property, including online listings, signage, and promotional materials.
Travel expenses: If you need to travel for property management purposes, such as to inspect the property or meet with tenants, you may be able to claim deductions for travel-related expenses, including transportation, accommodation, and meals.
06It is important to note that tax laws and regulations may vary by jurisdiction, and it is advisable to consult with a qualified tax professional or accountant to ensure compliance with local tax rules and to maximise eligible deductions for commercial property ownership.