Hello,
Situation
Currently living in a property that I am doing a renovation in.
Have claimed FHOG.
Plan to rent it out before the end of the financial year (09-10)
House is 50+ years old.Question
How will it work in terms of depreciation?
In terms of being able to claim for expenses (once tenanted) how will it work? As it will be my
PPOR for the next 6 years (or until i move back out of home) but their will be a tenant in the property.Can anyone shed some light on some accounting that might help my tax return? I understand comments will be of a general nature and not intended for financial purposes. I do have an accountant of my own. But its too late to call him now
If you move out of your main residence you can rent it and claim all costs as per normal – and still treat it as your main reisdence for CGT purposes in certain circumstances.
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
what about for depreciation purposes?
Depreciation is an expense too (non cash expense)
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
Yes I understand that but as the house is so old, and has recently undergone a Reno, can I get a QS to do a dep schedule on the house. Or just what I have improved?
Oh, yep deprecate the house (subjet to age) and fittings
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
Even if it’s 50 years old
if its 50 years ol you won't get any depreciation on the building. But if there have been recent renovations you can get depreciation claims on these. But the fittings could bring in a lot – hot water, carpets, light etc. Some QS companies guarantee u will get more back than their fees -or its free.
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
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