Extra Body Corp maintenance levy - deductible ?

[paddycal]

Hi

Firstly - I'm trying to learn as much of this as i can myself , so forgive me if this is something that i should be asking my accountant......


On my investment unit which is currently rented out, there was an extra Maintenance Levy imposed to cover replacement of old damaged windows and and replacement of the older Hot Water system. This Levy amounted to $3750 and was paid this financial year

My question - Can i add this amount of $3750 to the expenses of the rental unit -
or is it treated differently due to the nature of the work done ( window replacement and hot water system replacement )

Appreciate any help /comments

Thanks

Patrick

 

[Paul@PFI]

Oridinary strata levies are non-deductible. Special levies arent.

The ATO Rental publication explains this (p10)...Here is the background.

Your QS report should be updated. Discuss with the QS provider you used orginally. They may have a minimal charge to update the report.

 

[GaryT]

Oridinary strata levies are non-deductible. Special levies arent.

As with most questions I think the answer is "it depends". If the special levy was for repairs to common property then the levy is deductible.

If the expenditure is of a capital nature then it is not deductible.

The window sounds like a repair and the HWS sounds like capital (but may be depreciated).

Therefore an apportionment may be appropriate.

Seek professional accounting advice.

 

[depreciator]

In the spirit of 'it depends'...

The window sounds like a repair

It depends on how long the poster has owned the property for. If it is a recent acquisition, he won't be able to claim the replacement of 'old, damaged windows' as a repair.

 

[paddycal]

Hi -

thanks for responses....

thanks for that link Paul - very informative ... still going through it ..
but thought i had better respond to depreciators' question :

I've owned the unit for 6 months now and it has been rented out this whole time and had been when i purchased it...

i did mention this special levy and the work being done to the company who did my Depreciation report - their response was that they could not include the hot water system nor window repairs , as it came from strata levy and not my own expense.
they also suggested that i contact my accountant to see about how to claim for this.....

i'll check again to see if there are any specific details on how much is being spent on each part.

Thanks

Patrick

In the spirit of 'it depends'...



It depends on how long the poster has owned the property for. If it is a recent acquisition, he won't be able to claim the replacement of 'old, damaged windows' as a repair.

 

[Paul@PFI]

My understanding is that is is eligible building expenditure towards common property (the very nature of a strata). Div 43 Cap Allowance is eligible....A very small annual deduction.

Appreciate the QS views in reply.