Hi all,
Could someone help with explaining building depreciation on old buildings moved to a new location?
I have found a possible IP in suburban Perth. It is a 60’s cottage that has been uplifted and re-established on the current block in 2000.
My question is: As it was relocated in 2000 (new plumbing, wiring etc) does that make it eligible for building depreciation? [blink]
Hmmm.
I reckon you’d get a few different answers if you called the ATO on this one.
The cost of transporting the house to the site would not be claimable.
But the cost of reinstating it on the new block should be. It would have presumably had new footings/piers, and as you said it was rewired and replumbed. These would be regarded as ‘capital improvements’.
Might be best to confirm with your accountant.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
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