Contract just going through on a PPR which has a detached building currently being used for a business by current owners. As part of the contract I have agreed to leasing the whole property back to the owners for a couple of months to allow time to re-establish in new home and business locations.
What can I claim? 2 months of depreciation on capitalised value plus any expenses directly relating to the leasing — Have I missed anything
Thanks
Hi Ozman,
You can also pro rata the annual water rates, council rates and any insurance you are paying on the building for 2/12th's of the year.
Dave Ward | Geronimo Finance
http://www.geronimofinance.com.au
Email Me | Phone MeProperty Investor, Property Investment Expert & Advisor, Finance Expert & Strategist
Keep detailed ;omg term records of every thing as you won't be able to claim the main residence CGT exemption in full, ever.
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 Thanks Dave
Also 2/12 depreciation of fitting / furnishings which are at a different depreciation rate than the prime asset so will have to value them and split from overall capitalised cost as well. How would repairs to the property undertaken during the lease be treated?
Thanks Terry
Given that being the case it may be better to allow them to stay for free although the reduction in return due to CGT would diminish by proportion over time.
2/26 when first exempt at 2 years as PPR 2/62of CGT at 5 Years PPR I expect?
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