Hi Mark

I bought a 2 br apartment in a serviced apartment complex in ACT CBD 2 years ago & let it privately (+ve cashflow). Owners there have the options to join the serviced apartment group or live-in/let-out. I borrowed 80% from the bank without any problem. Its capital gain is not as good as houses but not too bad either & it’s easy to get t…[Read more]

If you purchase an IP in Canberra you can claim the whole lot (stampduty + legal fees) in that financial year. It was explained in this forum before. I forget the threat number. []

I’m a retired grandma, ex Software Support manager, currently work for the family & occasionally for the community without pay. I may be the oldest here. [] Huey

I’m rather new but notice this is more than a property investment forum. I’m trying to catch up by reading old entries & I’ve found good info & many nice & helpful people here. For the rest of the group I think you are nice as well & hope we can communicate more when we have time & not too shy.

Sorry, at this stage I only ask questions but…[Read more]

I think overall it would come out the same when you take money out from 1 IP & put it in another IP. You would pay or get back the same amount of tax. [] Huey

Pls follow your conscious. She already told you she couldn’t afford the current rent. If you increase the rent what would you expect her to do? She could not even move out until the lease ends at Xmas. [] Huey

Can someone please confirm info from Laurie? ATO & M Lomas’ book have left out this type of depreciation from their calculations for capital gain.[?] [] []

When using a discretionay trust to buy an IP if the IP doesn’t return positive cashflow how we’d claim depreciation?[]

Hi Michael,

Your other replies make sense, just as I thought.

Q1 is the one that I’m confused. Here is the extra details :

Mortgage duty : $1,600

What is Transfer duty ? is that stamp duty($16,000)? The bank charged us few hundred dollars extra for mortgage registration or something like that!

(The numbers provided are only for the purpose of…[Read more]

We are lucky so far to have good tenants. I manage the IP close to home. The previous tenants even helped my daughter with her homework [] & showed potential tenants around before they moved to their new house. I brought the lady flowers when she was sick. The current tenants are very nice too. They all transfer money directly to my bank account…[Read more]

Hi Michael,

IP : New house purchased for $450K (not $550K, sorry). Paid > $400 for property tax allowance schedules. The schedules specify : Land : 220,000, building (Division 43 allowance): $180,000, F&F (Plant) : 50,000.

Plant ($50,000) includes carpet $5000, dishwasher $1200, Stove $500, counter fittings, shelving $4000 ……. so carpet is…[Read more]

Sorry Michael, I overlooked & didn’t know you has carried over the topic of Working Out Capital Gain here.

You wrote “we can add any capital cost not claimed against income, such as renovations or the closing value of assets not fully depreciated. Add these to cost base.”. This is the grey area. Can you clarify further what the cost base should…[Read more]

Thanks Stu & Michael,

More details : We already paid off the mortgage for our PPOR before I retire. We used this equity to borrow 105% the value of our 2nd IP. Since the bank undervalued our PPOR so much it’s not enough to secure the loan without allowing the bank to hold both properties as security and paid mortgage stamp duties.

We have 2 IPs.…[Read more]

Hi Michael,

I hope to see your new topic soon. I’ve been reading from different sources to have a better understanding about tax claims on depreciation & their effects on the cost base at selling time but so far so … clear as mud! It’s not unusual that each taxman can give us a different answer.

Cheers

Huey

Thanks

Thanks all for your inputs.

We haven’t decided to sell our IP yet. When we bought it the agent gave us higher estimates for rental & depreciation claims. He did not even include deductions of building depreciation from the cost base after keeping the IP for 10 years. The IP has been negative geared. We rely on claiming tax on depreciations to m…[Read more]

Oops! I should minus (not add) $9000 depreciation of building from the cost base. Thanks Michael,

Other depreciations = fittings like Carpet, kitchen appliances, security system ….

We spent $7000 for carpet, blinds and have claimed depreciations for them every year. Can we still add the $7000 to the cost base?

We claim bank fees (= $1000,…[Read more]

Would anyone please let me know approximately how much the accountants charge for doing a tax return with fixed income + 1 IP + bank interest + dividents for 3 shares + charity donations ?

Many thanks in advance.

Huey

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Thanks CY,

From what you explain, I understand that :

(1) both types are subject to CGT
(2) for the periods that our family live in these houses we can’t claim depreciations unless we rent them out to other people, if to ourself it has to be at the market price.

There is nothing worth from my mistakes for you to learn! Over 2 years ago I…[Read more]

Thanks CY, I will search thru Domain.com.au. The areas I’m looking for IPs are limited because I don’t feel comfortable buying in areas that I know nothing about. Houses in Sydney are so expensive but I used to live there.

Huey

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Many thanks Andrew. It seems that I have to kiss my 70k super savings goodbye for a long time. Huey []