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Tax Considerations to Count While Buying Commercial Property

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Tax Considerations to Count While Buying Commercial Property

Purchasing an office property is a lucrative transaction that in the long run would give you great income benefits. So, while buying the same, it is essential to keep in mind the prospective tax considerations for the same. As tax liabilities have a significant impact on the financial viability of the commercial property buyer and this factor determines how much income the business person would yield from his or her venture as well. 

From knowing about the tax incentives as well as the benefits, one must explore the whole world of tax implications for making the right decision. And if you also want to know in-depth about the government charges and heavy duties levied on commercial building owners, then do hire a specialist Northeast Calgary commercial realtor services because it will benefit you to a great extent. 

Here in this informative blog, we will share with you some valuable information on the same subject so that you might have adequate knowledge on this matter whenever you plan to buy an office property. So let’s have a look at those tax regulations for buying a business property now 

1. Capital Allowances and Depreciation 

One of the best tax benefits one can have by buying a commercial property is depreciation and capital allowances. Depreciation allows you to deduct the cost of the property you own and the respective improvements it needs over time. Whereas Capital allowances offer tax relief for the costs of items of furniture, fixtures, and fitting within the property. When you will hire the services of an expert quantity surveyor, then you will get help identifying all the depreciable assets. 

2. Land Tax 

The Commercial property owners are subject to Land tax annually based on the value of the property’s land. It is important to note here that different regions have different thresholds and rates for land tax. And if the owner has multiple properties in possession, then this can have an impact on the total tax liability that they have to pay. 

3. Capital Gains Tax ( CGT) 

This type of tax benefit is given when the business or the company owner sells his or her building in the future with which he gains capital gains. The rate of the CGT depends on the country’s tax laws and the time period till the owner possesses the property. While in some regions, holding the property for a specific period of time can offer the owner various tax concession benefits. 

4. Goods and Services Tax ( GST ) and Value added Tax ( VAT ) 

In some areas, buying a commercial establishment can come with GST as well as VAT tax liability. The tax cost can be included in the purchase price, so depending on the nature of the business and commercial practices, you might have to pay the GST and VAT tax when you buy any commercial infrastructure. 

5. Stamp Duty 

When purchasing a commercial property, the owner might have to pay for the stamp duty which is just for once. However, the amount might differ based on the timeline and the areas where you have bought the commercial property. 


So, these are some of the tax liabilities and benefits of owning a business property. So, whenever you are planning to buy one, check on the above-said tax factors and implications. And for remaining financially safe, consult the expert Northeast Calgary Commercial Realtors service from G.S Mann who is the foremost Commercial Realtor trusted by all.

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