Hi All,
I'm a long-time lurker, and don't post too much. I prefer to read and absorb the wisdom you guys provide!!
I have an intersting situation as follows:
On July 1 2011 my partner and I bought an apartment, and renovated it over the following 3 months (carpet, paint, furniture, lights etc.). We are going to be renting it out from 1 July 2012 as a fully furnished apartment. The kicker is I will be working overseas, a non-resident for tax purposes, and my partner will be with me (not working). As I have no assessable income, other than the rent (which is less than interest costs), is it worth doing a depreciation schedule now? Being all new furniture, fixtures etc. there would be a sizeable amount of depreciation.
The ATO guidelines aren't particularly clear, but I assume that any depreciation incurred in 2012/2013 can be pooled with all deductible expenses, which, if greater than the rent received, can be carried forward to subsequent years?
Is my interpretation correct? When (if) I return, I can carry forward the depreciation and other losses above the rent received, and apply it against any assessable income from subsequent years? Is there a time limit to carrying forward losses, or can it be done indefinitely?
Thanks for any help!!
I'm a long-time lurker, and don't post too much. I prefer to read and absorb the wisdom you guys provide!!
I have an intersting situation as follows:
On July 1 2011 my partner and I bought an apartment, and renovated it over the following 3 months (carpet, paint, furniture, lights etc.). We are going to be renting it out from 1 July 2012 as a fully furnished apartment. The kicker is I will be working overseas, a non-resident for tax purposes, and my partner will be with me (not working). As I have no assessable income, other than the rent (which is less than interest costs), is it worth doing a depreciation schedule now? Being all new furniture, fixtures etc. there would be a sizeable amount of depreciation.
The ATO guidelines aren't particularly clear, but I assume that any depreciation incurred in 2012/2013 can be pooled with all deductible expenses, which, if greater than the rent received, can be carried forward to subsequent years?
Is my interpretation correct? When (if) I return, I can carry forward the depreciation and other losses above the rent received, and apply it against any assessable income from subsequent years? Is there a time limit to carrying forward losses, or can it be done indefinitely?
Thanks for any help!!
