Comments on: Tax depreciation differences between new and old properties https://www.bmtqs.com.au/bmt-insider/tax-depreciation-differences-between-new-and-old-properties/ Latest property and investor news Thu, 19 Dec 2024 20:42:17 +0000 hourly 1 https://wordpress.org/?v=4.2.38 By: BMT Team https://www.bmtqs.com.au/bmt-insider/tax-depreciation-differences-between-new-and-old-properties/#comment-2451 Wed, 27 Jul 2016 01:58:14 +0000 http://bmt-insider.bmtqs.com.au/?p=14021#comment-2451 Hi Nadia,
Thanks for your query. We’d be happy to help clarify this question.
The rules the Australian Taxation Office introduced for claiming capital works deductions in 1985 allowed residential property investors to claim deductions at a rate of 4 per cent for up to twenty five years. As more than twenty five years have passed, the 4 per cent deduction is no longer available an investors can only claim 2.5 per cent over the life of the property (forty years) introduced in 1987.
The following article from one of our previous Maverick editions helps to explain this further:
https://www.bmtqs.com.au/maverick/mav-37-4-percent-gone-but-capital-works-shouldnt-be-forgotten
A handy table with the different dates when legislation was introduced is also available on our website from the link below:
https://www.bmtqs.com.au/tax-depreciation-schedule

]]> By: Nadia https://www.bmtqs.com.au/bmt-insider/tax-depreciation-differences-between-new-and-old-properties/#comment-2411 Wed, 20 Jul 2016 12:07:42 +0000 http://bmt-insider.bmtqs.com.au/?p=14021#comment-2411 Rental properties – claiming capital works deductions

What are capital works deductions?
Hi, I got the following off the ato website which is a contradition in your dates? Can you clarify? thanks. Also what do you charge to assess a property? thanks:-

Capital works deductions are the following expenses you pay for which you can claim an income tax deduction:

building construction costs
the cost of altering a building
the cost of capital improvements to the surrounding property.
Note: You can only claim a deduction for the capital works on residential rental properties built after 17 July 1985.

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