Hi all
We recently purchased a house in Canberra, and I'm hoping for Forum views on the steps we need to take now to ensure a good tax outcome on the property.
The property is currently tenanted, and may remain so for the next 12 months. While we intend to make the property our PPOR, there are some tax advantages to the current arrangement.
(1) do we need a valuation on the property for future tax purposes (CGT, etc)? We didn't do this prior to buying (at auction) and the bank has advised that they didn't undertake a valuation for the purposes of our loan (which was a bit of a surprise - tho we think we bought well).
If so, what is the most cost effective way of doing this?
(2) should we organise a depreciation schedule? The house is around 45 years old, although some of the fittings and fixtures, particularly the kitchen, are a bit newer (the bathrooms and other aspects are close to original).
If so, how do we do this in a cost effective way? (we expect to get quite small deductions given the age of the house).
(3) are we obliged to retain the current PM, with whom the existing lease we have taken over has been signed? There is over a year to run on the lease, so we may want to shop around a bit (grateful also recommendations on PMs covering the Woden Valley area).
(4) what other bases do we need to cover to maximise our tax outcome and ensure the process is relatively smooth at tax time?
thanks so much in advance!
We recently purchased a house in Canberra, and I'm hoping for Forum views on the steps we need to take now to ensure a good tax outcome on the property.
The property is currently tenanted, and may remain so for the next 12 months. While we intend to make the property our PPOR, there are some tax advantages to the current arrangement.
(1) do we need a valuation on the property for future tax purposes (CGT, etc)? We didn't do this prior to buying (at auction) and the bank has advised that they didn't undertake a valuation for the purposes of our loan (which was a bit of a surprise - tho we think we bought well).
If so, what is the most cost effective way of doing this?
(2) should we organise a depreciation schedule? The house is around 45 years old, although some of the fittings and fixtures, particularly the kitchen, are a bit newer (the bathrooms and other aspects are close to original).
If so, how do we do this in a cost effective way? (we expect to get quite small deductions given the age of the house).
(3) are we obliged to retain the current PM, with whom the existing lease we have taken over has been signed? There is over a year to run on the lease, so we may want to shop around a bit (grateful also recommendations on PMs covering the Woden Valley area).
(4) what other bases do we need to cover to maximise our tax outcome and ensure the process is relatively smooth at tax time?
thanks so much in advance!