Demolition before 40 years of building allowance/capital works deductions?

[Freedom]

One of our IPs is on a fantastic acreage block - but not a fantastic house, say 16 squares with a double car port. About 14 years old.
What if we demolished it and rebuilt? Can you write off the undepreciated part of the building allowance, as you can for other items you depreciate when you dispose of them?
I would greatly appreciate any thoughts.

 

[geoffw]

I would expect that you could.

But another question.

If it's a fantastic acreage, is there a possibility of building a second residence on the block? Or even just making improvements to the existing property?

Demolishing a property 14 years old does seem a bit of a waste- and there may well be choiices which worked out more cost effective.

 

[Freedom]

Thanks, Geoff.
I have seen other people turn the existing dwelling into family accommodation/granny flat.
However the local Council rules are that family accommodation has to be within I think 10 m of the existing dwelling (to prevent de facto dual occupancy).
This block has good views, is one and a quarter acres, with a half acre flat top, a cliff and then more poorly accessible land down the bottom. You get the acreage benefits of separation from neighbours and only have to mow a reasonably sized block.
The existing house is poorly sited for views and solar aspect, and situated right in the middle of the block.
We have been thinking about creating inside/outside rooms as one way of improving, as well as enclosing the carport.