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Stupid ones may try. Taxpayers can always enter any number they like as a tax deduction. Tax is a self assessment system. The problem is you fail the substantiation requirements. Just shut your eyes...make up a number and claim it ?? The ATO would then review 100% of the balance and start...

This is a very common mistake. One that results in penalties when the ATO routinely detect it. My view is you only claim the GST when there is a OTP contract or a committed sales contract available. The accounting records need to be very good to assist with apportioning etc and to identify...

I have posted a new thread on scrapping and claiming scrapping if intention is to sell. I also keep being told by some that their accountant doesn't believe in scrapping deductions.

how? Accountants can usually deal with cost of items. It's why we can't do estimates etc We can't assess values or estimate anything. but can advise on effective lives of actual costs. self assessed life of an asset is often ignored

Accountants can't estimate and can only recognise assets at cost in the year when the outgoing occurs. Missed the boat.

YES - Maybe depending when built. The scrapping will affect the trading stock value for the one being sold. It may mean MORE profit at ordinary rates. The demolished structure doesn't transfer to the cost base of the new build. A strategy to trigger CGT at a discount may even be considered and...

Thanks Rooky...I get annoyed that most accountants tell you they know about property. But most don't. Very few are truly property savvy. Sure they know about claiming rental deductions, neg gearing etc. That's the easy bits. Margin scheme, ordinary income issues, CGT complexities, scrapping...

Scrapping and claiming a write off requires some diligence or you could mistakenly claim a deduction you are not entitled to. In your case you aren't renting on each side of the build. That changes things. Prior to ceasing to rent you may reassess the effective life of P&E assets. On...