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From: Rob Millington
My accountant suggests that claiming fittings as a depreciation with an IP has an effect on the capital gains tax applied when the IP is sold.
ie. 120k purchase price, depreciate 20k for fittings over time. When sold, say 10 yrs., then the original purchase price is reduced by 20k due to depreciated fittings. The capital gain is then calculated from that figure. Property value - 100k = Gain.
Have I had the correct advice? If so are there any suggestions to alternative approaches?
My accountant also suggested that a P&I loan was a better alternative with an IP. This makes me think he does not fully understand property investment. Any good property accountants in Adelaide?
My accountant suggests that claiming fittings as a depreciation with an IP has an effect on the capital gains tax applied when the IP is sold.
ie. 120k purchase price, depreciate 20k for fittings over time. When sold, say 10 yrs., then the original purchase price is reduced by 20k due to depreciated fittings. The capital gain is then calculated from that figure. Property value - 100k = Gain.
Have I had the correct advice? If so are there any suggestions to alternative approaches?
My accountant also suggested that a P&I loan was a better alternative with an IP. This makes me think he does not fully understand property investment. Any good property accountants in Adelaide?
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