I have a company title apartment in Sydney – the company is planning major repairs – waterproofing of the outer shell, painting and a fire upgrade amongst them…..all of them capital improvements to the building and all of them costing the shareholders a significant amount of money over two years as special levies…..can I claim these against any capital gains I may make when I sell?
Thank you
AsiababyAsiababy
Hi Asia,
If the repairs are ‘repairs’ they will be deductible in the year in which the expense is incurred. If, however they are considered improvements the costs (levies) will be taken into consideration when determining CGT liabilities down the track.
This issue is similar to strata/bbody corporates that also include a ‘sinking fund’ within the levy. The sinking fund comes into consideration when calculating CGT whereas fees paid for annual operating expenses such as gardening, insurance etc are fully deductible in the year in which they incur.
Derek
[email protected]Property investment advice and researched property in quality locations available.
Thank you Derek, that is very clear.
AsiaAsiababy
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