Sold IP ! depreciation question ???

Martin


Have you an accountant and can you clarify what you mean by the depreciation addjustment, are you are after the true write down value or after total value of dwelling to offset CGT

Jezza
 
Hi Martin,
if you don't understand the difference betwen capital works and depreciation I suggest you leave this to your Accountant

Dan
 
Martin


Have you an accountant and can you clarify what you mean by the depreciation addjustment, are you are after the true write down value or after total value of dwelling to offset CGT

Jezza

thanks for your reply

I have had the IP for 3 years and have now sold so I am setting about working out my CG or lost I have looked on the ATO site and cannot work out from my QS report which figuers i should be using .

Martin
 
Hi Martin,
if you don't understand the difference betwen capital works and depreciation I suggest you leave this to your Accountant

Dan


I understand the difference between them, I am looking for info on the workins of them in a CGT event....

I know people who own IP and business and just give all there paperwork etc.. to an Accountant and end up with huge bills , I know all accountants are not like this ... but I would never hand over my finances with out 1st understanding how they are worked out
 
I suggest you go to the ATO website and look up capital gains tax. You will have to do a fair bit of reading if you don't want to consult an accountant. You don't have to give the accountant all your paperwork, just a 15 or 20 minute consultation (obtain a cost first) will put you on the right track.

Very simply, ignore the depreciation on fittings. Depending on when you bought the IP, you may have to deduct any building depreciation claimed from the cost base, thereby increasing your gain for CGT.
Marg
 
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