Body corp

Looking at some aria apartments 1.5km from brisbane cbd

If body corp cost $5000 p.a how much of that can you claim back each year?

Does it depend what tax bracket you fall in?

 

Look I'm not a registered tax agent and could be criticised for giving advice.

But, I pay body corporate levies and I claim the whole flippin lot. It doesn't matter what tax bracket I'm in.

I just got to be careful with those special levies, which are of a capital expenditure nature. They may not be fully deductible in the year they are incurred.

 

Yes.

 

$0 if it is a PPOR.

What sort of property in Brisvegas justifies $1,250 pq in levies? (except something noice).

 

Assuming that the property is a rental the BC fee should be a deductible outgoing. Any special levies wont be. eg levy to pay for remediation of defective cladding. Its not a repair if its a replacement?) When special levies are paid it may mean at a later date after all the wok is done a quantity surveyor can assess the new works and advise what amount is deductible each year on your unit and common area entitlements.

Beyond strata I would be making enquiries into the annual depreciation. Its a deduction you dont have to make a payment each year for !!

 

All the outgoings can be used to offset against your rental income, plus annual depreciation for the property. Given that Aria's property has lots of amenities, the annual tax depreciation is quite high compared to other apartments (which is a good news for negative gearing purpose).

 

However the eventual capital gain may be higher - albeit only 50% of that impacts.
Its important to remember that every $ of QS deduction can come back and add to the future capital gain as the costbase is reduced.