Good afternoon OzB’ers,
Question for those who has an investment property…
I have a property depreciation report which includes division 43 capital works deduction.
Preparing my tax return, does this division 43 capital works deduction go into “Total Capital Allowances - manually calculated” or “total capital works - manually calculated”?
Thanks in advance!
Spicy Chicken curry
OZB - The Tax Specialists™
You’ve got a 50/50 shot at getting it right. I like those odds!
Seriously though, I believe the answer is in your question
Pls try googling first next time.
Division 40 = Capital Allowances = Not fixed to the property such as blinds, carpets, lights, etc.@ higher depreciation rate.
Division 43 = Capital Works = Fixed to the ground such as the building @ 2.5% or 4%.
The Division 43 capital works deduction is an income tax deduction that investors can claim for the wear and tear that occurs to a building’s structure and items considered to be permanently fixed to the property. When preparing your Australian tax return, you should enter the amount of your Division 43 capital works deduction in the “Total capital works deductions” field. This field is used to report deductions for construction costs incurred in the construction of capital works used to produce assessable income, such as buildings or extensions, alterations or improvements to a building, and leasehold improvements such as shop fitouts.
It’s important to carefully read the instructions for your tax return and enter all information accurately. If you have any questions or concerns about how to report your deductions, you may want to consult with a tax professional or contact the Australian Taxation Office for assistance.
If you're asking this question then you need an accountant.
Their fee is tax deductable.