Deductibility of renovations

Discussion in 'Accounting & Tax' started by Logan, 10th Nov, 2016.

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  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Hmmm you sound like Dazz :)

    He was a big believer in ground leases and taught me a thing or two about them. It's a solid option and allows you to increase the portfolio significantly quicker than buying built or building your own.
     
  2. Beano

    Beano Well-Known Member

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    Yeah BUT I was rather dumb and only discovered this very late in my investing career
    Had to go the long way first
    Brought residential ..then many types of commercial . ..should have started ground lease in the begining of my investing career when I was a young teenager !
    Oh well maybe if I get another chance ...like in "Ground Hog Day"
     
  3. Rob G

    Rob G Well-Known Member

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    Yes, but the landlord can inherit "reversionary" depreciation deductions when the tenant vacates with no rights to remove the improvements.

    You get the deductions for somebody else's expense :)
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Ah ...but that means getting a QS report :) The non-believer won't do that.
     
  5. Rob G

    Rob G Well-Known Member

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    You should be able to get it from the tenant. It is a legal requirement that they provide you with one and you do know how to contact them.

    A QS report is a concession from the ATO where it is unreasonable for a purchaser to be able to acquire the data, such as on purchase from a spec builder.