Taxes Consolidation Act 1997 section 372X

Rented residential accommodation: deduction for certain expenditure on construction

Section 372X provides a "section 23-type" deduction against rental income for expenditure incurred on constructing residential accommodation forming part of a qualifying park and ride facility.

• Allows a deduction, against rental income from the property, for construction expenditure on a qualifying house at a park and ride facility.
• The house must be 38 to 125 square metres, used solely as a dwelling, and first let under a qualifying lease.
• Residential expenditure attracting relief at the facility is capped at one-quarter of total qualifying capital expenditure at that facility.
• A clawback arises if, during the 10-year relevant period, the house ceases to be a qualifying premises or the lessor's interest is transferred.