I have never called you a liar and you accussing me of calling you something I never have, does that not make you a liar
I did not even mention you by name in any of the posts I have made, yet you have taken to attack me, very strange
But you are ONE OFF the usual suspects making false ill-informed posts relating to tax.
So stop pretenting to know something about a topic you clearly have very little knowledge and there will be no need for you to get upset when I make posts correcing this mis-information
Now some facts
s 43-20(1) of the ITAA 1997 allows for a write off of capital works for buildings were the construction started on or after 21/08/1979, that is any building constructed over the last nearly 30 years
The rate of write off is either 2.5% or 4% per straight line deduction, depending on the date the construction commenced.
So house built in 1980 for a cost of $50K, if purchased as an income producing asset, a write off of $1,250 can be claimed each year over 50 years ($50K x 2.5%)
A property built today for a cost of $600K be it an off the plan unit or a single residence a write off of $15000 per year can be claimed over 50 years ($600K x 2.5%)
So HOW IS this a different kettle of fish when a deduction for capital works can be claimed on both properties at the same rate
Tax ruling TR2004/D3 outlines the commissioners views as to what what are items of plant and equipment, items that a capital allowance (depreciation) can be claimed on
There is difference made between if the rental property is a free standing single home, a strata unit or any other type of building configeration, off the plan built by the investor or purchased after the completion of construction. THAY ARE ALL THE SAME no different kettles of fish here
the ONLY diffirence between what can be claimed in an off the plan $600K unit or a 20 year old house is the dollar value of the claim and this is only because of the difference in the amount of dollars spent.
If I give $1000 to charity and you give $10, I am going to get a larger tax deduction only becuase I spent more money.
If I spend $3000 on a stove for a rental property I am going to gat a greater deduction than you if you spent $600 on a stove
