On 1 August 2021, Capricorn Holdings Pty Ltd acquires a property (consisting of a large block...

 

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On 1 August 2021, Capricorn Holdings Pty Ltd acquires a property (consisting of a large block of land and a commercial office building) for an amount of $5.8 million. The company engaged a quantity surveyor to determine the breakdown of the costs relating to the property. The quantity surveyor's report reveals the following cost information. Cost of land Demolition of old building on site (April 2012) Pre-construction site clearance (May 2012) Construction of new building (August 2012) Landscaping (March 2014) $ 1 200 000 40 000 170 000 2 600 000 32 000 The company leased the commercial office building to tenants on 22 August 2021. It was rented out to tenants from 22 August 2021 to 30 June 2022 inclusive. Required: Calculate Capricorn Holdings Pty Ltd's deduction for capital works expenditure for the year ended 30 June 2022. Please quote appropriate sections of the ITAA (1997) in your answer. Please round all calculations to the nearest whole dollar. On 1 August 2021, Capricorn Holdings Pty Ltd acquires a property (consisting of a large block of land and a commercial office building) for an amount of $5.8 million. The company engaged a quantity surveyor to determine the breakdown of the costs relating to the property. The quantity surveyor's report reveals the following cost information. Cost of land Demolition of old building on site (April 2012) Pre-construction site clearance (May 2012) Construction of new building (August 2012) Landscaping (March 2014) $ 1 200 000 40 000 170 000 2 600 000 32 000 The company leased the commercial office building to tenants on 22 August 2021. It was rented out to tenants from 22 August 2021 to 30 June 2022 inclusive. Required: Calculate Capricorn Holdings Pty Ltd's deduction for capital works expenditure for the year ended 30 June 2022. Please quote appropriate sections of the ITAA (1997) in your answer. Please round all calculations to the nearest whole dollar.

Answer rating: 100% (QA)

Capital works deductions for the year end... View the full answer