Hello everyone,
I just have a quick question I’m hoping someone can answer.
I bought a new unit 2 years ago, its my first and I’ve lived in it since. Since I’m paying off the mortgage and not receiving any rental income I’ve never had to deal with negative gearing and being a landlord, and doing my tax was very straighforward.
My situation has changed, I will be moving out soon to my partner’s place and I will be renting my unit out.What I would like to know is what do I need to do to to make my unit eligable for negative gearing and use it for tax purposes, as an Investment property?
I assume that I can’t just move out of the unit and start renting it out straight away and then negative gear it come tax time next year.
I’ve heard that I need to get a valuation of the unit and will cost something like $500? Is this accurate?
What other red tape/paperwork is needed, does anyone know? Specifics would be great.I’ll be getting a property manager and a new tax agent in the coming months, and I’d like to get the general idea on how to set up my property to be negatively geared.
Thanks in advance, looking forward to any advice !
You can just rent it out and claim nearly all expenses on your tax – your tax agent will know exactly what to claim.
You can have a depreciation report done for about $600. This will give you more to claim – esp if the apartment is reasonably modern. Even the $600 you can claim.
I think you will find this much easier than you think.
Try to make sure you have a good property manager to run it for you. Ask your friends and colleagues for a recommendation or ask on here.
I hope this helps,
Kind regards,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the reply Simon, its much appreciated
So I guess its not as difficult as I first thought. Thats what I’ve heard about – the depreciation report – I interpreted this as a valuation when a friend told me about it. I think I will go ahead with it as the unit is only two years old so it will be worthwhile.
Do you know who would be able to carry out this depreciation report? Would it be a bank or an independant third party like any real estate agent?
Scott from depreciator posts here under Depreciator. He has done reports for myself and for my clients.
As your place is under two years old then do not hesitate to get it done. He also offers a iron clad guarantee that you will get more back than the cost of the report!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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