All Topics / Help Needed! / New Depreciation Rules

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  • Profile photo of BenDBenD
    Participant
    @aussietrooper
    Join Date: 2018
    Post Count: 1

    With the new depreciation rules, as I understand it any property acquired after 01July2017 will no longer be able to depreciate any fixtures (ovens, blinds etc).
    I have a townhouse that I bought prior to this date, but which is not finished construction yet. If I move in temporarily once construction is complete, do I lose the ability to depreciate those fixtures? (as they might be regarded as ‘used’)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes probably – incidental use may be ok but you will have to get some specific advice as it is a bit of a grey area.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of ChrisChris
    Participant
    @bmt-tax-dep
    Join Date: 2016
    Post Count: 3

    Probably, yes.

    The occasional/incidental use rule is a grey area and there’s information on the ATO website that we believe is soon going to be out-of-date. At the moment we feel like anything more than a week (say, on an annual basis) could very well test the definition of “occasional”. That advice has come from the NTAA.

    Chris | BMT Tax Depreciation
    https://www.bmtqs.com.au/
    Email Me | Phone Me

    Maximise the cash return on your investment property

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