Is body corporate levies adjusted at settlement considered as tax deductible?

As far as I know, strata fees or body corporate levies are tax deductible for IP. But at the settlement, these amount seem to include in the settlement statement and share between seller and buyer.

It's calculated by seller's solicitor. The number is easy to understand and the calculation which they divided by number of days make sense.

However, I just wonder if that amount that I paid is tax deductible?

If I paid that amount separately to the body corporate by myself, I would get the receipt and I could claim tax on that. But, I am not sure when it's included in the settlement figure.

Cheers,

 

your share would be.

 

Ordinarily yes

 

Ditto council rates, water and sewer services and land tax. Take care that special strata levies are not deductible (if they are adjusted)

This assumes that the property is to be a rental property.

 

Special strata levy may be deductible. E.g. a special levy for concrete cancer repairs. Not all special levies are capital.

With a new acquisition high probability (in fact certain) it is an initial repair however.

 

Not when the levy is paid which is why the ATO hold that view. Typically levies are charged and collected THEN the works are made. The deduction then limited to the % of actual cost not the amount paid. Could even be mixed purpose eg cancer + new facade.
The repair deduction would be available when the works are completed.

I find its often a matter for QS to review for common areas since until the Strata has conducted the required works its not more than accumulation of funds for a future purpose. And its not uncommon to find a few recalcitrant owners delay the works too.