What can I claim on a granny flat?

[4GH1RH]

If I am constructing a granny flat (bedroom, bathroom, lounge, diningroom, kitchen) on the lower level of PPOR, can I claim any of the costs or depreciate the costs for tax purposes?

The construction has been with the intention of renting it out, so i figured I should at least be able to depreciate some of it to offset the income from rent.

Thx

Cam

 

[bubbleroo]

Well, i don't see why not...it's an investment. I wonder do you need to consider what portion of the land value will this apply to your PPOR ? do you need to apportion that too to get real value of the granny flat ?

cheers
Bubbles

 

[duncan_m]

If I am constructing a granny flat (bedroom, bathroom, lounge, diningroom, kitchen) on the lower level of PPOR, can I claim any of the costs or depreciate the costs for tax purposes?

The construction has been with the intention of renting it out, so i figured I should at least be able to depreciate some of it to offset the income from rent.

Thx

Cam

Cam, its a double edged sword.. claiming any of the depreciation etc will result in a partial loss of your PPOR CGT exemption when/if you sell.

You just need to run the numbers to work out what you're happier with.. the tax benefits now, or the tax benefits later.

 

[Kamak]

You could just rent the granny flat out for cash and not tell anyone anything . I bet it would be postive cash flow and geared.