We are considering purchase of a relocated/transported house for an IP. Now according to the building code of a Australia this is classified as a new construction (must meet present building codes), and you need a building permit etc.. But if the original house being moved is pre 1985 can you claim the 2.5% depreciation per annum or not? Seems a grey area.
Cheers.
I really must look at this forum more often.
Sallyann, you may never read this response given your post was so long ago, but the ATO would likely regard the original building as a pre 85 structure and ineligible for the special building write-off (that's the 2.5%).
Similarly, you would be pushing it trying to get a deduction for transport to site.
But, the work you do on-site i.e foundations, service etc, and the work you do when you get the property there i.e. tarting it up, would be claimable.
ScottThanks Scott, much appreciated.
Sallyann, I'd add that you would have to capitalise the cost of transport as it would form part of your cost base (purchase).
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