All Topics / Help Needed! / tax and CGT on holiday rental

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  • Profile photo of waydo77waydo77
    Participant
    @waydo77
    Join Date: 2011
    Post Count: 155

    hi there

    looking for help on the following-

    I currently live in my PPOR and have done so for 18 months

    I am looking at moving interstate for work and renting or possibly buying and doing a few live-in reno’s. I intend to return to the house to be my PPOR in 1-2 years.

    I hope to rent the house as rental holiday accommodation and achieve a higher yield than I would if it was just a residential rental, residential would achieve approx 4.2% unfurnished or 5.6% furnished, holiday accommodation would be around 10% at 40% vacant or 6% at 60% vacant based on my calculations.

    1. Can I depreciate any of the building and fixtures and fittings while it is being rented?

    2. If the house is furnished either for holiday accommodation or residential is the furniture able to be depreciated?

    3. How would renting it out affect my capital gains tax on the property when I go to sell later down the track?

    4. does anyone know of a good accountant that is helpful with this kind of stuff and actively invests?

    Thanks a lot

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    1.  yes
    2. yes, if you rent it as furnishe
    3. could possibly be CGT depending on circumstances
    4. yes. which state/city are you in?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of waydo77waydo77
    Participant
    @waydo77
    Join Date: 2011
    Post Count: 155

    hey terry ,
    im in adelaide, but will be in mackay area in approx 8 months, are u an accountant terry?

    so much to take into account with what I have planned..

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    no, i am a lawyer with an interest in tax.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of waydo77waydo77
    Participant
    @waydo77
    Join Date: 2011
    Post Count: 155

    must you only pay CGT if it is rented for more than 6 years ?

    We plan to only rent it for 2 years and then move back in, basically it will still be our PPOR as we will be renting in mackay…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    waydo77 wrote:
    must you only pay CGT if it is rented for more than 6 years ?  ..

    in some cases/

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 6 posts - 1 through 6 (of 6 total)

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