My belief and my reading of p21 of the rental guide from the ATO (thanks again Scott) is that there is diff between capital works or construction depreciation and plan (fixtures and fittings) depreciation. My belief is that the construction depreciation claimed over the yrs needs to be subtracted from the cost base to reduce to to ensure there is no double dip. BUT the flip side of this is that (my belief) fiv 40 items depreciated over the yrs are NOT used to reduce cost base at time of cgt event.
So if I buy a pre 1985 property (no construction write off) the div 40 depreciation does NOT need to be used to reduce the cost base.
Can someone tell me if I am going to need to change my beliefs?
Just arguing with my accountant.
So if I buy a pre 1985 property (no construction write off) the div 40 depreciation does NOT need to be used to reduce the cost base.
Can someone tell me if I am going to need to change my beliefs?
Just arguing with my accountant.