Investment property swimming pool removal - tax treatment?

Discussion in 'Accounting & Tax' started by r35gtr, 17th Sep, 2017.

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  1. r35gtr

    r35gtr New Member

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    Hi everyone.
    Hoping someone on the forum can help me out.

    I have an investment property, and over time the swimming pool deteriorated and pump died, to the point where the repair (and maintenance) costs weren't worth the repair. So I had the concrete pool demolished, removed, land-filled & compacted (with engineers certificate) - at a cost of close to $10,000.

    Does anyone know whether I'm entitled to deduct this $10K as a a capital expense? or does it become a CGT offset when I sell the property?

    Cheers for your help
     
    r35gtr, 17th Sep, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    capital expenses are not deductible.
     
    Terry_w, 17th Sep, 2017
    #2
  3. Paul@PAS

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

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    The cost will add to the CGT costbase for a future sale
     
    Paul@PAS, 18th Sep, 2017
    #3
  4. r35gtr

    r35gtr New Member

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    Thanks for your responses :)
     
    r35gtr, 18th Sep, 2017
    #4