Explanation of depreciation claims impact on Cap Gain

I just read this as it's useful to me right now and I thought others may find it useful:
How depreciation affects capital gains tax - Property Update

 

@Dan Donoghue, I like to explain it this way:

I get the benefit of the depreciation NOW in today's dollars

My children (hopefully my grandchildren) will have to pay CGT in tomorrow's dollars, hopefully in 70+ years time, if/when they sell.

 

I remember having a long argument with a friend over whether or not depreciation lowered the cost base of the asset.

I think his argument at the time was "if it does, then what's the point?"

Obviously the deferred payment of tax, as well as the 50% discount in most situations.

 

It is not an either or position. If you do not claim it - the potential for the reduced cost base is still present. Simply not claiming does not mean you are clear.

s 110-45(4) TD 2005/47

 

I'm totally into the idea, just got my depreciation schedule and it works hugely in my favour