Seller beware!
Hi,
Yesterday I had a chat with an old friend of mine, who found himself nearly broke after paying a tax bill that came as a surprise. Several years ago he bought a unit OTP in Sydney. The building had a gym, a pool, a BBQ area, lifts, etc. Over 4 years he claimed a lot of depreciation. In 2002 fy he sold the unit expecting to pay $20K in CGT. What he has not realised however was the fact that the claims he made over the years reduced property's capital base increasing the CGT. The actual CGT bill he received was around $45K.
Seller beware!
Say Cheese
Lotana
Hi,
Yesterday I had a chat with an old friend of mine, who found himself nearly broke after paying a tax bill that came as a surprise. Several years ago he bought a unit OTP in Sydney. The building had a gym, a pool, a BBQ area, lifts, etc. Over 4 years he claimed a lot of depreciation. In 2002 fy he sold the unit expecting to pay $20K in CGT. What he has not realised however was the fact that the claims he made over the years reduced property's capital base increasing the CGT. The actual CGT bill he received was around $45K.
Seller beware!
Say Cheese
Lotana