Purchasing an Investment Property
2. Interest Claims
4. Building cost write off
If the building is under 25 years old you will be entitled to claim a deduction of 2.5% per year of the original cost of construction of the building for up to 40 years from the original date of construction. If you do not know the building cost you can contract a quantity surveyor to determine the building costs and prepare the depreciation schedules for the property and determine what can be claimed.
NOTE: A deduction cannot be claimed for the costs of acquiring or disposing of the rental property, except in the ACT where properties are leasehold and stamp duty and legal expenses are allowable. Examples of expenses of this kind include the purchase cost of the property, conveyancing costs, advertising expenses, building inspection reports, travel to view property prior to purchase and stamp duty on the transfer of the property. However these costs may form part of the cost base of the property for capital gains tax purposes.