I'm about to arrange to have my split PPOR/IP surveyed. It's a four story townhouse, completed in Dec 2007.
60% of the property is owned by me and includes the 'better parts' of the building. 2 bedrooms, 2 bathrooms, the terrace, balcony and kitchen
40% of the property is owned by my family trust, who rents it to my home business. It includes one bathroom, a large bedroom (used as an office), a study and the double garage (converted to an office)
My business accountant argues that the depreciation schedule should reflect the rooms the business uses, whereas the person I spoke to at the survey company today told me they would survey the entire property and simply claim 40% of it. That SEEMS right to me, since even though there's no kitchen etc, that when we sell the full property, the trust would be claiming 40% of the sale.
My accountant is concerned that the tax department is checking depreciation schedules closely and that we should be claiming on the rooms specifically used for the business.
If he's correct, then how would I deal with that upon sale? Surely there would be an argument that the trust gets less than 40% of the sales profit right?
Another example is the $8,000 I spent installing a motorised blind on the terrace. I paid the full amount. Accountant said that when we eventually sell I can argue for that capital expense to be considered and give a slightly smaller than 40% share of sales. This is because the terrace is mostly used personally (debatable actually - I hold meetings up there more often than I use it personally but that's another story)!
60% of the property is owned by me and includes the 'better parts' of the building. 2 bedrooms, 2 bathrooms, the terrace, balcony and kitchen
40% of the property is owned by my family trust, who rents it to my home business. It includes one bathroom, a large bedroom (used as an office), a study and the double garage (converted to an office)
My business accountant argues that the depreciation schedule should reflect the rooms the business uses, whereas the person I spoke to at the survey company today told me they would survey the entire property and simply claim 40% of it. That SEEMS right to me, since even though there's no kitchen etc, that when we sell the full property, the trust would be claiming 40% of the sale.
My accountant is concerned that the tax department is checking depreciation schedules closely and that we should be claiming on the rooms specifically used for the business.
If he's correct, then how would I deal with that upon sale? Surely there would be an argument that the trust gets less than 40% of the sales profit right?
Another example is the $8,000 I spent installing a motorised blind on the terrace. I paid the full amount. Accountant said that when we eventually sell I can argue for that capital expense to be considered and give a slightly smaller than 40% share of sales. This is because the terrace is mostly used personally (debatable actually - I hold meetings up there more often than I use it personally but that's another story)!