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  • Profile photo of ptnptn
    Participant
    @ptn
    Join Date: 2006
    Post Count: 74

    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 ptnptn
    Participant
    @ptn
    Join Date: 2006
    Post Count: 74

    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 andymitchellandymitchell
    Participant
    @andymitchell
    Join Date: 2005
    Post Count: 67

    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 depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    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
    [email protected]
    http://www.depreciator.com.au

    Profile photo of andymitchellandymitchell
    Participant
    @andymitchell
    Join Date: 2005
    Post Count: 67

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

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    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
    [email protected]
    http://www.depreciator.com.au

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

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