I have a few questions about tax on residential investment properties I was hoping the experts here may be able to shed some light on. I have researched these quite a bit but I haven?t come to answers I?m 100% with:
- Is it fine to have some Prime Cost and other Diminishing Value depreciating assets on the same property? From what I understand you can select the type of depreciation on an asset by asset basis (except when you create a pool then you may be forced to move some things to the pool). Eg it may be better to do PC for 5 year assets and DV for 10-20 year ones depending on how long you intend to hold the property and your tax situation in particular years.
- Do you write off any remaining value in a diminishing value asset once it reaches the end of its ?tax life? or does it keep just giving smaller and smaller amounts of depreciation forever unless you move it to a pool?
Thanks a lot
Smallbuyer
- Is it fine to have some Prime Cost and other Diminishing Value depreciating assets on the same property? From what I understand you can select the type of depreciation on an asset by asset basis (except when you create a pool then you may be forced to move some things to the pool). Eg it may be better to do PC for 5 year assets and DV for 10-20 year ones depending on how long you intend to hold the property and your tax situation in particular years.
- Do you write off any remaining value in a diminishing value asset once it reaches the end of its ?tax life? or does it keep just giving smaller and smaller amounts of depreciation forever unless you move it to a pool?
Thanks a lot
Smallbuyer