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  • Profile photo of ptn

    The treasurer recently announced that an asset diminishing value will be increased from 150% to 200% affective from the 10th of May 2006. Does this mean that for a new house, the capital will be depreciable over 20 years (5% pa) and fixture is about 20%pa (previously ranging from 5% – 15%)???.[specool]

    Am I dream. Or he’s just too kind.

    Regards
    ptn

    Profile photo of BorgInvestorBorgInvestor
    Participant
    @borginvestor
    Join Date: 2005
    Post Count: 51

    I believe the changes to depreciation do not apply to investment properties.

    Profile photo of ptn

    Actually, they do. Just not the structual. ie .building but items like hotwater system is. So said my financial advicer.

    This will make my cash flow a bit more attractive now.

    ptn.

    Profile photo of andymitchell

    I have just had a depreciation schedule completed, and I put this to the serveyers. They said this would apply, but only to purchases after the date stated in the budget. A little too late for me though…but I have a Q…currently, our unit is a PPOR, and it will be “converted” to an IP in June. Even though the property was built in late 05, does the fact that it will effecttively be a newly acquired IP when we start to rent out the unit mean the new depreciation laws will apply?

    Profile photo of depreciator

    Yep, it will apply to residential property.

    I’m not sure whether it is correct forum behaviour, but here is a link to a discussion about this at Somersoft.

    http://www.somersoft.com/forums/showthread.php?t=25785

    I thought I’d post it rather than repeat everything.

    Scott

    Tax Depreciation Schedules
    Australia wide service
    1300 660033
    scott@depreciator.com.au
    http://www.depreciator.com.au

    Profile photo of andymitchell

    Hey Scott – what do you think to my query above?

    Profile photo of depreciator

    Hi Andy,
    You acquired the Assets prior to May 10 this year, so you’re out of luck. In many cases it won’t make a massive difference.
    Scott

    Tax Depreciation Schedules
    Australia wide service
    1300 660033
    scott@depreciator.com.au
    http://www.depreciator.com.au

Viewing 7 posts - 1 through 7 (of 7 total)

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