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From: GJC -
Hi - I've been into Jan Sommers books (& others)for some time but new to this Forum. Looks like some good info happens here so I've joined.
We currently have 2 investment properties running with a neutral cash flow and are just
about to go hunting for the third. To date I haven't got a good handle on the post July 85 @ 4% & Sept 87 at 2.5% depreciation deal. Can someone fill me in on the detail with these (I have the ATO booklets on Rentals & Depreciation but they aren't too specific either)
All the recent property investment research I've done to date certainly indicates that the building depreciation on properties purchased, that have been built since these periods, is the KEY part of any property investment strategy.
Now, the question is,…… as an example, if I buy a house now that was built in say 1986 and only been used as a normal residential dwelling to date;
1. Does the 4.5% depreciation allowance apply to the building component of the purchase once I use it as an IP??
2. If so, does it apply to the "Cost of Construction" at the time OR to the Valuers
apportionment of the building value at present?
3. What is the evidence needed to satisfy the tax office that the building qualifies as being "commenced" after these dates above? Building application to council or what??
Thanks
Garry
Hi - I've been into Jan Sommers books (& others)for some time but new to this Forum. Looks like some good info happens here so I've joined.
We currently have 2 investment properties running with a neutral cash flow and are just
about to go hunting for the third. To date I haven't got a good handle on the post July 85 @ 4% & Sept 87 at 2.5% depreciation deal. Can someone fill me in on the detail with these (I have the ATO booklets on Rentals & Depreciation but they aren't too specific either)
All the recent property investment research I've done to date certainly indicates that the building depreciation on properties purchased, that have been built since these periods, is the KEY part of any property investment strategy.
Now, the question is,…… as an example, if I buy a house now that was built in say 1986 and only been used as a normal residential dwelling to date;
1. Does the 4.5% depreciation allowance apply to the building component of the purchase once I use it as an IP??
2. If so, does it apply to the "Cost of Construction" at the time OR to the Valuers
apportionment of the building value at present?
3. What is the evidence needed to satisfy the tax office that the building qualifies as being "commenced" after these dates above? Building application to council or what??
Thanks
Garry
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