Depreciation New Rules.

Discussion in 'Accounting & Tax' started by Rose89, 4th Apr, 2018.

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  1. Depreciator

    Depreciator Well-Known Member

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    We had a client yesterday who bought a townhouse in Brissy from the developer. It was finished in early December and the developer couldn't sell it - bad time to sell. They put a tenant in because they thought it might make it more attractive to investors. Might have been a fair bit of vacant stock in the area, I suspect. It was inside the 6 month window from completion, so all was well.
    Scott
     
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  2. freddy

    freddy Well-Known Member

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    Yes its rare but can occur such as an owner/builder, occupation certificate less than 6 months of selling.
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Agree rare though. Happens a little like Scott observed.

    Owner builder occupancy would see an end to Div 40 however. Owners cant lease to themselves so the test for the 6 months is not met.

    This issue is something devs need to consider as tenanting for an investor could work or could backfire v's leaving it vacant. Investors need to be diligent when buying about eligibility to Div 40. Dont rely on what a REA agent or developer selling says.