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Capital works deduction rental property

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Newbie

Views 145

Replies 3

A property purchased July 2016, constructed 1992 has been a PPOR while renovating. Renovations include garage, concreting, carports and retiling floors and kitchen update. What capital works depreciation can been claimed for future rental periods.

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Most helpful response

Taxicorn

Replies 0

@etchasketch 

 

Div 43 depreciation was not affected by the recent changes to div 40 deductions.

Therefore you should be able to claim them using an Opening adjustable value as of when first rented.

 

3 REPLIES 3
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Master

Replies 2

So the property has been your main residence since you bought it, you renovated it and now you're wanting to rent it out?

 

There's a lot that comes into play with capital works deductions so it's hard to give a definite answer based on the info you've provided. Do you have a tax agent to help you out with this?

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Newbie

Replies 1

Thank you for your reply. Tax agent says no depreciation deduction, first call tax dept said no deduction, second call tax dept referred us to division 43 and said yes, which looks pretty clear to me. Should be able to claim depreciation on capital works once the property is rented. Was hoping that someone had come across this circumstance before.

Highlighted

Most helpful response

Taxicorn

Replies 0

@etchasketch 

 

Div 43 depreciation was not affected by the recent changes to div 40 deductions.

Therefore you should be able to claim them using an Opening adjustable value as of when first rented.