A taxpayer who lives on a main road, decides to convert part of his home as a business but needed to make some alterations, like building a separate entrance and adjusting internal walls, and so that the shopfront had clear signposting that distinguished the business entrance.
The cost of the construction of the alteration was $80,000 and the business opened on after the alterations were completed on 1 August 2019.
The private residence of the house was reduced to 75%, which had eligible construction costs of $300,000 back in 2009.
What is the maximum capital works deduction that can be claimed by the taxpayer?
Select one:
Capital works deductions relate to the deduction of construction costs and any structural improvements to your investment property over a 25 or 40-year period
Examples: building construction costs, costs of altering the building such as adding an internal wall, kitchen renovations or bathroom makeovers, costs of capital improvements to the surrounding property, and any initial repairs, for example, in remedying defects, damage or deterioration that existed at the date you acquired the investment property
Deduction : 300000*2.5%=7500
A taxpayer who lives on a main road, decides to convert part of his home as...
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