Tax advantages of buying commercial premises


You can gain tax advantages from buying a commercial property, provided you keep records right from the start.

Commercial premises include properties like a shop, factory or office.

Tax deductions
If your property is used to run a business or is available to rent for that purpose, you are eligible for tax deductions. You can claim expenses associated with owning your business premises such as interest on a loan required to buy the property and maintenance expenses.

GST credits
|You may be eligible to claim a credit for the GST included in the purchase price of your commercial premises. Ensure you claim GST on other expenses relating to buying the property, like solicitor’s fees and ongoing running expenses.

Keep in mind you are unable to claim GST credits if:

  • The seller used the margin scheme to work out the GST included in the price
  • You purchased the property from someone who is not registered or required to be registered for GST
  • You purchased the property as a GST-free supply
  • You are not registered for GST

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