With the new depreciation rules, as I understand it any property acquired after 01July2017 will no longer be able to depreciate any fixtures (ovens, blinds etc).
I have a townhouse that I bought prior to this date, but which is not finished construction yet. If I move in temporarily once construction is complete, do I lose the ability to depreciate those fixtures? (as they might be regarded as ‘used’)Yes probably – incidental use may be ok but you will have to get some specific advice as it is a bit of a grey area.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Probably, yes.
The occasional/incidental use rule is a grey area and there’s information on the ATO website that we believe is soon going to be out-of-date. At the moment we feel like anything more than a week (say, on an annual basis) could very well test the definition of “occasional”. That advice has come from the NTAA.
Chris | BMT Tax Depreciation
https://www.bmtqs.com.au/
Email Me | Phone MeMaximise the cash return on your investment property
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