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One of Bobo's investment properties is an old building in Wollongong NSW and which for years he has not been able to find a stable
One of Bobo's investment properties is an old building in Wollongong NSW and which for years he has not been able to find a stable tenant. The last tenant moved out in May 2023 and so Bobo took the opportunity to undertake several repairs prior to the next tenant moving in on 1 July 2023. Bobo seeks your advice as to whether any of the following might be an allowable deduction for the financial year ending 30 June 2023: 1. Paid $3,000,000 for the building; 2. Replaced a tin roof, that had several sheets of tin blown off, and many rusted sheets ($18,000); 3. Painted the footpaths and driveways of the property with new state of the art 'Dulux Everlast' paint ($2,500) to enhance the look of the property; and 4. Paid $5,000 in September 2022 for a course in 'Basic Building & Maintenance' at a local educational college to gain knowledge in how to maintain his investment properties. Advise Bobo on the following: 1. Whether he can claim the above as deductions in the 2022/2023 financial year? You should support your advice with references to legislation and case law. (12 Marks). 2. Assume that Bobo files his Tax Return
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Heres a breakdown of whether Bobo can claim each expense as a deduction for the 20222023 financial year Purchase Price of the Building 3000000 General...Get Instant Access to Expert-Tailored Solutions
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