Hi guys
Just wondering if there are any special rules for capital allowance on the building for an apartment?
I don't own the whole apartment but rather just 1 unit in the building itself, am I still entitled to claim the 2.5%?
Thanks in advance
Scab
Hi Scab,
In your specific situation, I’m not aware of any specific rules regarding capital works.
What you might be referring to is the 4% rate for > 10 apartments which are used for “short term” accommodation (ITAA97 sec 43-145 )
“short term” is a little ambiguous… because it does say “ie apartment buildings” which arent necessarily short term…ITAA97 sec 43-145 wrote:consisting of at least 10 apartments, units or flats which are for use mainly to provide short-term traveller accommodation (ie apartment buildings). The 4% rate is still available if the buildings also have facilities that are mainly for use in association with providing short-term traveller accommodation.Hope that helps..
Engage a QS, they're cheap and will give you a more effective depreciation schedule.
Get Q/S to do it… I heard that they can claim more than builder report
a q/s will still give you 2.5% on the capital works.. a dodgy accountant might look at the total contract construction cost and apply 2.5% to the total rather than depreciating plant elements over a shorter time.
I thoguth a Q/S only does the furniture and fittings + other Plant and equipment?
I have asked if they can allocate some value to the furniture and fittings of the apartment per Steve McKnights book.
Thanks for all your help guys!
Scab
To get the 4% eluded to in another post, you yourself must own 10 or more units in the complex. That won't apply to most people.
You will get 2.5% on the construction costs, depending on age, plus depreciation on the plant items.
Regards
Neil is spot on. A depreciation schedule will include any building allowance claimable on the property (depending on its age). Here's some more info on depreciation reports: http://blog.rentwise.com.au/index.php/2010/05/18/depreciation-reports-please-explain
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