I think you need to live in it for at least 12months to be able to get 50% off discount on tax on capital gains if you sell later.
I would be interested on suggestions on who to go to for depreciation report as i will be getting one when my development is over.I was told only 6 months.
I have just double checked and confirmed that you have to hold your investment property for at least 12 months to get the 50% discount on CGT.
No CGT on principal place of residence.have to be continuous or accumulative?
it’s 12 month before you get the 50% discount on CGT..
HOWEVER i dont think the original poster was asking about CGT
— as a matter of fact i dont think he/she is selling lolAmit – since it’s been your investment home for only ummm 1 -2 month? ( may – June) then what ever you get from the depreciation report it will be pro-rated 2/12….so may not be worth the money; given that it’s a small unit as well…but you can always ask for a free quote to see what the quote comes up as ..
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
OK- yep you be able to claim the 1 bedroom from Nov- June. could be worthwhile, spend ~$700, should be able to get $2,000 back i would think.
Just note the things thats Deprecating the most is the “internal” (70% of the cost) .
$650 is on the expensive side for a Depreciation report…you could arrange a cheaper price ( more then 50% off) if your willing to provide the pics + measurement etc,,,that why it saves them the cost and time going out to the property; this will be easy for you since you live next door
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
The major issue with providing your own information is that you may not be able to identify every depreciable item like a QS would. For that reason, a physical inspection from a qualified QS could possibly generate a better report. It costs more up-front but you might be able to claim more long-term.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
CGT- you need to OWN it for 12 months to get the 50% discount.
Depreciation report. Won't get much back this year but the report lasts 20 years. Might as well get a little now and more next year.
Sometimes they can do it by photos. But you need to photograph everything you want to depreciate. This can make it a bit cheaper.
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This thread is a bit like having a hearing problem and only hearing half of the conversation.
Might as well delete it.
I thought it was just me!
To answer the OP original question:
Where to get Depreciation report?:
There are many you can use, I don't know most of them as the one I use works.
The one I use is Depreciator, I have a few DS from them and they are excellent: http://www.depreciator.com.au/
They charge around $650 and they will charge you $50 to update it when you make changes (this is cheap, and they actually did it for free for me as I am a repeat customer and my schedule was 10 years old).
To anyone who wants to say they are expensive or another is better, that is your opinion and you are entitled to it, but lets keep it simple for the OP. They may be a little more expensive but they work and they are easy to read, I really don't care as it is tax deductible and I can't be bothered shopping around to save a few $ on something I purchase once. I HIGHLY recommend them.
Also another point worth mentioning is that the date for CGT purposes is the Contract Date and NOT the Settlement date.
You could go to Contract on the 31st December 2011 and then Settle some 8 months later.
Decide to sell the property immediately and eventually get a Contract on the 1st January 2013.
You would still be entitled to claim the CGT discount on the sale.
In relation to Depreciation just remember any Building Alllowance claimed during ownership is deducted from the initial Cost Base of the property as and when you sell it so you have it both ways.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I would recommend going and paying someone to come in and do an assessment for you. There are people that not only do a report for you but also will structure a depreciation schedule for you. From memory there is a few different ways, to structure your depreciation schedule depending on the way your investment portfolio is structured. I'm trying to remember where i read up about this stuff but right now i'm drawing a serious mental blank.
SSM
I think you are referring to the 2 ways of calculating and applying Depreciation being the Prime Cost and Diminishing value method.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
— as a matter of fact i dont think he/she is selling lol
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