The facts, and figures
Our client Leo had owned a Typical Country Pub for 20 years with moderate renovations in that time.
That pub had a recent major renovation and extension costing $15,255,984. Some capital works were scrapped and removed in the process of the renovation and immediate deductions of $852,633 were claimable for that element.
The Large Country Pub now has gaming, restaurants, sports bar and a bottle shop.
Some of the historical capital works are still claimable ongoing and the new renovation is claimable over the next 40 years.
The outcome
Leo engaged Capital Claims Tax Depreciation to prepare a tax depreciation schedule.
In the first year Leo claimed $1,334,840. Over the first five full financial years Leo claimed $2,791,921 in tax depreciation deductions. Total tax depreciation claimed for life of schedule $18,440,174.