Demolition Costs of IP
- Thread starter willister
- Start date
A tax deduction applies to expenses necessarily incurred in earning your income.
My guess would be that you demolished your PPOR.
It is no longer your IP therefore the demolition had no connection with earning money from it as an IP.
Even as an offset against the proportion of capital gains tax payable when you sell,
I'd say it would be considered after the period of when it was used as an IP.
There are tax experts here who hopefully have the answer you'd prefer, but I wouldn't have considered it as a deductible expense.
Were there no salvaged items to offset the demo costs?
I asked for some demo quotes once and found a company willing to do it for no cash and full rights to all salvaged items.
Although it was in the late 80's (the Federation Green/Cream Years) and archi-antiques seemed much more sought out back then.
Cheers,
Beef.
My guess would be that you demolished your PPOR.
It is no longer your IP therefore the demolition had no connection with earning money from it as an IP.
Even as an offset against the proportion of capital gains tax payable when you sell,
I'd say it would be considered after the period of when it was used as an IP.
There are tax experts here who hopefully have the answer you'd prefer, but I wouldn't have considered it as a deductible expense.
Were there no salvaged items to offset the demo costs?
I asked for some demo quotes once and found a company willing to do it for no cash and full rights to all salvaged items.
Although it was in the late 80's (the Federation Green/Cream Years) and archi-antiques seemed much more sought out back then.
Cheers,
Beef.
I realise this is an old post, and came across it searching for topics regarding tax deductions on the demolition of an investment property.
I believe the response is somewhat inaccurate.
If you are planning on a full demolition to rebuild, or even a partial demolition to renovate, you should get a quantity surveyor to prepare a scrapping or demolition schedule to place a value on all items being thrown away or demolished for an immediate tax deduction and on completion of the renovation or construction a new depreciation schedule will be needed.
Probably too late for the OP, but in case anyone else is searching through the posts like me, thought I'd add a comment.
Source: http://www.propertyobserver.com.au/...reduce-their-tax-bill-ken-raiss/2012072655669
I believe the response is somewhat inaccurate.
If you are planning on a full demolition to rebuild, or even a partial demolition to renovate, you should get a quantity surveyor to prepare a scrapping or demolition schedule to place a value on all items being thrown away or demolished for an immediate tax deduction and on completion of the renovation or construction a new depreciation schedule will be needed.
Probably too late for the OP, but in case anyone else is searching through the posts like me, thought I'd add a comment.
Source: http://www.propertyobserver.com.au/...reduce-their-tax-bill-ken-raiss/2012072655669
Not sure what the OP was intending long term for the property - he said "move in and rebuild it" which I took to mean they will move in while they are re-building. You are right of course, if the OP is intending on remaining in the property after the rebuild, then a demolition write-off would not apply
A question regarding this,
What if you had an investment property for 10 years, and then wanted to demolish and build a new investment property.
I know the bank needs to be involved as they have security over title if there is an existing mortgage.
But what can be claimed as a tax deduction?
Appreciate input guys.
What if you had an investment property for 10 years, and then wanted to demolish and build a new investment property.
I know the bank needs to be involved as they have security over title if there is an existing mortgage.
But what can be claimed as a tax deduction?
Appreciate input guys.
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