I currently have 2 IPs which overall have a neutral cashflow before tax however I have around $10,000 of depreciation I can claim against these two properties each year which will reduce my taxable income from my job which is good.
However my question is if I had no taxable income (I.e no job in the tax year - looking at having a gap year hence why I will have no job for a year or so) how would this depreciation be treated? As I would have a neutral property portfolio before tax then $10,000 of deprecation but no income to offset this against.
I suppose this would be similar to if say I had a neutral portfolio before tax with an income of $30k pa from a job but depreciation from my properties of $40k so I would have $10k more depreciation than income.
I'm sure it's a simple answer but just something that has crossed my mind while doing my tax return and thinking about future plans.
Thanks
The Chancer
However my question is if I had no taxable income (I.e no job in the tax year - looking at having a gap year hence why I will have no job for a year or so) how would this depreciation be treated? As I would have a neutral property portfolio before tax then $10,000 of deprecation but no income to offset this against.
I suppose this would be similar to if say I had a neutral portfolio before tax with an income of $30k pa from a job but depreciation from my properties of $40k so I would have $10k more depreciation than income.
I'm sure it's a simple answer but just something that has crossed my mind while doing my tax return and thinking about future plans.
Thanks
The Chancer