Question: Where to put capital allowance recoupments is not obvious.
You need to complete a capital gains worksheet.
If you open the ITR, then there are 4 little squares to the right - see attached. Be sure to activate capital gains.
In which case, you report the increasing balancing adjustment as taxable income.
Capital gains are associated with capital works -
Notes: For reducing the costbase., you can do so with a negative value. Alternately, don't use the worksheet, just key your own calculated values directly into the capital gains schedule. Use your own summary values.
In working out a capital gain or capital loss from a rental property, the cost base and reduced cost base of the property may need to be reduced to the extent that it includes construction expenditure for which you have claimed or can claim a capital works deduction. <<