CGT and depreciation

[coastymike]

You adjust the purchase price by the value of depreciable plant and equiment (Division 40) items at purchase and adjust the sale price by the value of depreciable plant and equipment. items on sale.

You then have a balancing adjustments on depreciable items.

Division 43 capital works affect the cost base.

 

[babushka]

You adjust the purchase price by the value of depreciable plant and equiment (Division 40) items at purchase and adjust the sale price by the value of depreciable plant and equipment. items on sale.

You then have a balancing adjustments on depreciable items.

Division 43 capital works affect the cost base.

Thanks, coastymike, for the reply.

Am a bit thick here, about the terminology. But, do you mean that both depreciation items (depreciable plant & equipment and building / capital works) will have to be subtracted from the purchase / cost base?

 

[Paul@PFI]

Yes (sort of).. The Cap Allowance is added back only for some taxpayers. Depends when you acquired the property. Pre-post 1997 is the relevant concern. If its acquired after 7:30pm on 13th May 1997 you must adjust CA also. (Time of budget change)....Acquired before its a gift.

 

[babushka]

Yes (sort of).. The Cap Allowance is added back only for some taxpayers. Depends when you acquired the property. Pre-post 1997 is the relevant concern. If its acquired after 7:30pm on 13th May 1997 you must adjust CA also. (Time of budget change)....Acquired before its a gift.

Thanks Paul@PFI, for the clarification. Property was bought after May 1997, so both depreciation items would have to be adjusted against the purchase price for CGT then.