Capital works deduction & depreciation?

Discussion in 'Accounting & Tax' started by RenegadeDom, 8th Jun, 2016.

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  1. RenegadeDom

    RenegadeDom Well-Known Member

    22nd Feb, 2016
    I'm in the process of completing an attached secondary unit and am aiming to have it complete and certified by end of the financial year, should be finished next week. I've already organised for a depreciation report to be completed. I've been reading that capital works deductions can only be achieved for a period that the dwelling can be rented. From ATO website:

    You can only claim deductions for the period during the year the property is rented or is available for rent.

    If you have claimed, or could have claimed, a capital works deduction for construction expenditure:

    • you can't claim the same amount as a deduction for decline in value of a depreciating asset, and
    • the amount must be excluded from the cost base of the asset.
    Does this mean I can't claim any capital works deduction this year as the unit will only be available for rent for approx 2 weeks? Can I not claim depreciation and capital works deduction at the same time?
  2. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    18th Jun, 2015
    You could claim 2 weeks worth.
    You can claim both at the same time, but not on the same items of course.