Hi Guys,
Many thanks for any assistance which you can offer me.
I bought my first IP in 2008 in Gunnedah. Unfortunately paid too much for this ($285000) and it has been sitting there without any rise in capital gains. A recent valuation performed came back as $265000.
We would be hopeful in getting $285000 if we sold this, and would lose on closing costs paid.
We are thinking of selling this property as our strategy has changed and we'd prefer to not have the possible worries of a vacant property whilst investing our money in other projects. The fact that this money isn't really doing anything is our main motivator.
It was 18 months old when we first purchased it. We have claimed >$10000 on building depreciation per year.
My understanding is that if we decide to sell this, the depreciations which we have previously claimed are added to the sell price to calculate capital gains tax.
I have been told that it is possible to have a statement in the contract explaining that the property is being sold in a condition, according to the depreciation schedule provided. Ie that all the fittings/inclusions are in a depreciated state according to the schedule. Or something similar to that effect to avoid the clawback.
This then excludes the requirement of paying tax on the depreciated values.
We want out of this property but uncertain how to walk away with our deposit intact.
Many thanks for any assistance which you can offer me.
I bought my first IP in 2008 in Gunnedah. Unfortunately paid too much for this ($285000) and it has been sitting there without any rise in capital gains. A recent valuation performed came back as $265000.
We would be hopeful in getting $285000 if we sold this, and would lose on closing costs paid.
We are thinking of selling this property as our strategy has changed and we'd prefer to not have the possible worries of a vacant property whilst investing our money in other projects. The fact that this money isn't really doing anything is our main motivator.
It was 18 months old when we first purchased it. We have claimed >$10000 on building depreciation per year.
My understanding is that if we decide to sell this, the depreciations which we have previously claimed are added to the sell price to calculate capital gains tax.
I have been told that it is possible to have a statement in the contract explaining that the property is being sold in a condition, according to the depreciation schedule provided. Ie that all the fittings/inclusions are in a depreciated state according to the schedule. Or something similar to that effect to avoid the clawback.
This then excludes the requirement of paying tax on the depreciated values.
We want out of this property but uncertain how to walk away with our deposit intact.