• Rental properties – capital works deductions

    You can claim capital works deductions for construction costs for a rental property that satisfies certain conditions.

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    What are capital works deductions?

    Capital works deductions are income tax deductions that can be claimed for the expenses such as:

    • building construction costs
    • the cost of altering a building
    • the cost of capital improvements to the surrounding property.

    Note: You can only claim a deduction for the capital works on residential rental properties if the properties were built after 17 July 1985.

      Last modified: 01 Nov 2016QC 21620