Tax depreciation for warehouse property

Warehouse depreciation questions usually arise after purchasing an industrial property, completing a fitout, changing tenancy arrangements or reviewing records before EOFY.

The schedule may need to separate base building works, office areas, services, hardstand, loading infrastructure and any eligible plant or fitout items.

That makes the reporting task different from a rental house or apartment because the income-producing asset can include several functional zones.

For warehouse property, the review should distinguish the building shell from office components, concrete hardstand, roller doors, loading areas, services, mezzanines, security, signage and tenant-specific fitout.

Commercial and industrial case-study work can produce a very different profile from residential property because office plant, commercial carpet, air handling and fitout items may be material.

The schedule should make the claim basis easier for the accountant to review, especially where the purchase documents do not separate building works from later improvements.

BWK Group case studies include industrial and commercial assets where the long-term deduction value came from a substantial capital works base, with separate treatment for affected plant or office fitout items.

That matters because a warehouse is not just four walls and a roof. Access, services, office areas and fitout can all affect the reporting scope.

A stronger report gives the owner and accountant a year-by-year schedule rather than a rough estimate of building value.

BWK Group can scope warehouse, industrial and commercial assets using the available purchase, construction and improvement records.

Where exact records are incomplete, the report can document assumptions and cost allocations so the accountant has a clearer basis for review.

Before ordering, send the contract details, lease or tenancy context, improvement invoices, plans if available and any existing depreciation information.