Hi all
I was wondering if anyone had an idea of how i can roughly work out how to apply depreciation of an IP to my tax situation.If I was to buy an IP for $345,000 with a rental per wk of $300 I know i can claim all my expences and loss in income to pay the loan ie shortfall on the rent to cover my loan but how do I work out the depreciation on the property itself so I can work out how much I would have to contribute each week towards the loan repayments.The property will be around 8-9 years old.I understand I can apply to the tax office to have my personnal income tax adjusted each week to allow for my own contributions to the shortfall in the loan.
Hope someone is able to help.
Many ThanksI am no expert, but I have been doing my homework these past couple of months…(due dilligence..some would call it!!)
The price you pay for your property or the Rental income you get from it has NOTHING to do with Depreciation. The value of the building, as evaluated by a Quality Surveyor, whose jurisdicition I am yet to determine (I did say I am doing (present tense) my homework)…will suryvey the house..and in your case, might say that the Building is worth 175K and the land 175K. You get no depreciation on the land, and 2.5% annually on the building, provided it was built after 1985 (I think)…
So $4,375.00 is your depreciation you can claim, provided you owned the property for the full 12 months..if not, then you calculate it on a pro rata basis…
Of course, get somebody qualified to value you property when it was built…not what it is worth now!!
Hope this helps…and if somebody disagrees, I look forward to learning where I am wrong.
Cheers
KrisHi Kris
Thanks loads for the information (I,m just setting out and all the info I can get is a massive help)
Cheers
Wayne
You must be logged in to reply to this topic. If you don't have an account, you can register here.
