If you own a commercial property, then you should familiarise yourself with tax depreciation reports, if you don't know anything about them already. These are some of the things that commercial property owners should know about tax depreciation reports, even if they are new to owning commercial property.
It's a Good Idea to Have a Tax Depreciation Report Done
You don't technically have to have a tax depreciation report done on your commercial property, but failing to do so is not a good idea. When filing your taxes, you have to worry about being taxed based on the full value of your property. This is true both when filing income taxes and when it comes to paying property taxes.
However, there is a chance that your commercial building is not worth as much as the government thinks. This is the whole point of having a tax depreciation report done so that you can prove it if your building has depreciated in value. This can help you with getting tax deductions and reducing your overall tax burden. Since paying taxes can be incredibly expensive for any business, being able to reduce your tax burden might be very important to you.
The Report Will Include a Lot of Useful Information
Your tax depreciation report will include a lot of useful information if it is done properly. It will outline things like the condition of your building, the estimated value of your building, the things that have caused your building to depreciate in value, and more.
You Should Have it Done By the Right Company
You should not try to do a tax depreciation report on your own, since you might not know how to do it properly without the right training and since your report might not be accepted as being legitimate and authentic. If you want to be sure that you get as many deductions as possible so that you don't pay more taxes than what you are required to pay, and if you want to make sure that you don't have any problems with having your tax returns and accompanying documents accepted, you'll want to hire a certified tax depreciation service.
You Should Give it to Your Accountant
Once you have received your full tax depreciation report, you might want to look over it and save a copy in your records. However, you should also make sure that you give a copy to your accountant. Once they have the tax depreciation report, they should know exactly what to do to help you with your taxes.