Owners of existing residential rental properties may incur expenditure to meet the Healthy Homes standards.
Can owners of existing residential rental properties claim income tax deductions for costs incurred to meet Healthy Homes standards?
Costs of a revenue nature are generally deductible in the income year they are incurred and these may include the costs of:
(if sufficiently attached to the building);
Capital costs will generally result in a deduction for a depreciation loss unless they are for something that is part of the residential rental building. The cost of items that are part of the building are added to the building's cost and depreciated at the same rate as the building. Generally, this is zero percent.
Items that are likely to be part of the building include:
Capital costs for some items acquired that are not part of the building will be either:
Items able to be depreciated include:
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Ground Floor, Takapuna Finance Centre
159 Hurstmere Road
P O Box 331 626
Takapuna, Auckland