SearchDeductibility of work in flat share structure
Wendy asks:
(updated on Monday, April 06th 2020)
If I have shares in a flat owning company, and rent out the flat I have use of for those shares, can I personally claim tax rebate for things I personally want to do on the building itself (like pull down a chimney externally and internally, re-roof) at my own expense only above my own flat? The constitution doesn't give me permission to do this. But can I go ahead and do it anyway and claim maintenance in my tax?
Our Experts Answer:
The flat owning company is really just a mechanism to hold your share of the title but you are the beneficial owner of the property via that structure. So yes, any maintenance work you undertake that meets the deductibility criteria and nexus to income should be claimable. Some of what you are describing though sounds like fairly major structural work that appears to go beyond remedying wear and tear from your tenants, so remain mindful of the capital limitation to deductibility.
Most Read
| Unity First Home Buyer special | 3.99 |
| SBS FirstHome Combo | 3.99 |
| ICBC | 4.25 |
| Co-operative Bank - First Home Special | 4.35 |
| Co-operative Bank - Owner Occ | 4.45 |
| TSB Special | 4.49 |
| ANZ Special | 4.49 |
| ASB Bank | 4.49 |
| SBS Bank Special | 4.49 |
| Unity Special | 4.49 |
| Westpac Special | 4.49 |
| TSB Special | 4.00 |
| Kiwibank Special | 4.49 |
| Kainga Ora | 4.49 |
| Nelson Building Society | 4.59 |
| ICBC | 4.59 |
| Unity Special | 4.65 |
| SBS Bank Special | 4.69 |
| ANZ Special | 4.69 |
| BNZ - Std | 4.69 |
| Westpac Special | 4.75 |
| ASB Bank | 4.75 |
| ICBC | 4.99 |
| Kainga Ora | 5.15 |
| SBS Bank Special | 5.29 |
| Westpac Special | 5.29 |
| BNZ - Std | 5.29 |
| Kiwibank Special | 5.39 |
| TSB Special | 5.39 |
| ASB Bank | 5.45 |
| AIA - Go Home Loans | 5.45 |
| Co-operative Bank - Owner Occ | 5.49 |
| BNZ - Classic | 5.59 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 3.95 |
| Co-operative Bank - Owner Occ | 4.99 |
| Co-operative Bank - Standard | 4.99 |
| Heartland Bank - Online | 5.30 |
| ICBC | 5.39 |
| Kiwibank - Offset | 5.65 |
| Kiwibank | 5.65 |
| Kainga Ora | 5.69 |
