Can anyone help with this question.
I am currently demolishing a house and a fellow investor mentioned that I could claim as much as 70-80K depending on the (QS) report.
My plan to demolish and strata the land into 2 lots and on sell. I would welcome any way that I can reduce my tax liability on this project.
I have never heard of this before, found this information below
What is scrapping?
Scrapping is the removal and disposal of any potentially depreciable assets from an investment property. In other words, it is the demolition of any existing structure or fixture onsite that would have been eligible to claim deductions for depreciation. Scrapping of existing structures onsite is a very effective method of obtaining deductions within our tax system. It can provide additional tax credits for investors who demolish or dispose of existing buildings or any part of it which were owned as an investment asset and eligible to produce income.
Essentially, if an item is scrapped the amount that is yet to be written off for a particular asset (the residual value) can generally be claimed as a 100% tax deduction at the time of disposal.
Any help from tax experts on this would be appreciated.
Cheers
MTR
I am currently demolishing a house and a fellow investor mentioned that I could claim as much as 70-80K depending on the (QS) report.
My plan to demolish and strata the land into 2 lots and on sell. I would welcome any way that I can reduce my tax liability on this project.
I have never heard of this before, found this information below
What is scrapping?
Scrapping is the removal and disposal of any potentially depreciable assets from an investment property. In other words, it is the demolition of any existing structure or fixture onsite that would have been eligible to claim deductions for depreciation. Scrapping of existing structures onsite is a very effective method of obtaining deductions within our tax system. It can provide additional tax credits for investors who demolish or dispose of existing buildings or any part of it which were owned as an investment asset and eligible to produce income.
Essentially, if an item is scrapped the amount that is yet to be written off for a particular asset (the residual value) can generally be claimed as a 100% tax deduction at the time of disposal.
Any help from tax experts on this would be appreciated.
Cheers
MTR