U11_DA_Building_s 08/09 1THE UNIVERSITY OF HONG KONG SCHOOL OF BUSINESS BUSI 0018 – Hong Kong TaxationUnit 11 – Depreciation Allowance: Building Coverage 1 Introduction 2 Qualifying trades for industrial building allowance (IBA) 3 Qualifying buildings or structures 4 Qualifying person for IBA 5 Qualifying expenditure 6 Depreciation allowances for industrial buildings -Initial allowance (I.A.) -Annual allowance (A.A.) -Balancing charge (B.C.)/Balancing allowance (B.A.) 7Sale of an unused industrial building 8Sale of a used industrial building 9Commercial buildings -Rebuilding allowance for years up to 1997/98 -Commercial building allowance from 1998/99 onwards 10 Balancing adjustment for building used as both industrial and commercial building Learning Objectives After completing this unit, you should be able to: •distinguish between industrial building and commercial building •identify who is entitled to industrial building allowances and commercial building allowances •determine the qualifying expenditures •compute the depreciation allowances of a used and unused industrial building •determine the balancing adjustments •compute the depreciation allowances of a commercial building 1 INTRODUCTION •Two classes of depreciation allowances are available for buildings: -Industrial buildings allowances (IBA) -Rebuilding allowances (RBA) or commercial building allowances (CBA)
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