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From: Glen Taylor
Hi All,
Bought my first IP yesterday and I'm all excited. I frequent this site often and just love it!
And now to my question:
I approached my Accountant and asked him about building depreciation (Capital works deduction - special building write-off provisions) on a residential investment property.
He basically indicated that you could not claim Building depreciation unless you build the property for invest purposes, or you purchased the property from an investor who did, was renting it out and passes on the undepreciated amt to you. Plus of course the ol was constructed after 1985.
I read a document from the ATO regarding Capital works deduction (special building write-off) and it has a section of changes in building ownership and it says "...to be eligble for the deduction, must continue to use the building for income-producing purposes." which sort of supports my accountants view. However, all other examples relating to building depreciation do not specify that the previous owner had the property for investment purposes.
In short:
If I purchase a 4yo house from an Owner Occupier and use it as an investment property, can I claim building depreciation?
Many thanks in advance,
GlenT.
Hi All,
Bought my first IP yesterday and I'm all excited. I frequent this site often and just love it!
And now to my question:
I approached my Accountant and asked him about building depreciation (Capital works deduction - special building write-off provisions) on a residential investment property.
He basically indicated that you could not claim Building depreciation unless you build the property for invest purposes, or you purchased the property from an investor who did, was renting it out and passes on the undepreciated amt to you. Plus of course the ol was constructed after 1985.
I read a document from the ATO regarding Capital works deduction (special building write-off) and it has a section of changes in building ownership and it says "...to be eligble for the deduction, must continue to use the building for income-producing purposes." which sort of supports my accountants view. However, all other examples relating to building depreciation do not specify that the previous owner had the property for investment purposes.
In short:
If I purchase a 4yo house from an Owner Occupier and use it as an investment property, can I claim building depreciation?
Many thanks in advance,
GlenT.
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