Add depreciated items to CGT basis?

[Pauley]

I'm about to sell a property that was rented, therefore CGT will be due. I know that legit "capital" expenses can be added to the "base" cost of the house to raise the cost basis and lower the CGT. e.g. If the house cost 100k and I spent 10k on windows, then the cost basis would be 110k.

That's clear enough.. However what happens if the cost of that window install (10k) was, as a capital expense, depreciated fully during the rental period of the property (i.e. the 8 year allowable depreciation for such..) against rental income?

Can it still be added to the initial house cost while calculating CGT to lower the chargeable gain?

Tx!

 

[asdfg]

No

 

[T McGibney]

.

That's clear enough.. However what happens if the cost of that window install (10k) was, as a capital expense, depreciated fully during the rental period of the property (i.e. the 8 year allowable depreciation for such..) against rental income?

If you did that, your tax returns are wrong.

As an integral part of the structure of the property, windows do not fall within the definition of furniture and fittings in respect of which capital allowances may be claimed against rental income.

 

[TravisT]

hi Tommy, any thoughts whether a replacement boiler for an existing heating system is a once-off expense, or a capital allowance to deduct over 8 years?

 

[T McGibney]

hi Tommy, any thoughts whether a replacement boiler for an existing heating system is a once-off expense, or a capital allowance to deduct over 8 years?

In the context of a rental property?

The former, once it's actually a replacement. (It will be so in practically all cases.)

Definitely not the latter.

 

[TravisT]

Sorry, yes, the context of a rental.. Great, that's good to hear that it is a once off expense..