I have a client who lived in his house for 7 years. He completed 6 months of renovations before renting the property. If I apportion from time of renting, can I claim the capital works deduction, or would this be initial works in making the property suitable to rent. Only making the expense applicable to CGT purposes and increasing the Cost base at a later point in time since it was not originally rented.
Client needs a valuation at date of first rental, so capital works incurred before that date will be in that valuation. That is how it is done.
Capital works costs can be claimed at 2.5% per annum from date first rented,
so client needs a QS report that will include all capital works from the start.
Client needs a valuation at date of first rental, so capital works incurred before that date will be in that valuation. That is how it is done.
Capital works costs can be claimed at 2.5% per annum from date first rented,
so client needs a QS report that will include all capital works from the start.
Thank you for your response.
Technically he is allowed to claim it then even though the repairs happened before the point of renting and not having previous renters in.
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