Just want to confirm where you have rented out your PPOR and claiming the 6 year CGT exemption is there any issues with claiming depreciation on Fixtures/Fittings and Capital Allowance on the build cost ?
Normally, as I understand, these deductions would reduce your cost base for CGT when it comes time to sell but if CGT does not apply given the exemption is this just a perk.
Example numbers, per annum, for 6 years:
Rental income $40k
Deductions ($25k) (interest,rates,repairs etc but exc Depn and Cap Allw)
Depn ($5k)
Cap Allw ($10k)
Taxable Income $NIL
Then sell PPOR CGT free. Any issues with the above ?
Thanks,
Ross
Normally, as I understand, these deductions would reduce your cost base for CGT when it comes time to sell but if CGT does not apply given the exemption is this just a perk.
Example numbers, per annum, for 6 years:
Rental income $40k
Deductions ($25k) (interest,rates,repairs etc but exc Depn and Cap Allw)
Depn ($5k)
Cap Allw ($10k)
Taxable Income $NIL
Then sell PPOR CGT free. Any issues with the above ?
Thanks,
Ross