After my purchase last year in Slacks Creek (QLD), I've been pretty inactive on the forums here, but a recent email from the ATO, letting me know about the changes to depreciation (and travel expense) laws has brought me back lol. I can see the depreciation law won't affect any of my existing properties, and I can see this was discussed in NOV/DEC a lot here, so I maybe someone can link me to a relevant thread.... but I have a few questions: 1: If I'm buying a standard (existing) unit/house, will there be ANYTHING I can depreciate? 2: If so, how will it compare to the past? I've used a quantify surveyor in the past and they've just given me an annual figure ($4-$7k), so I've never taken the time to understand what he was actually doing (soz, n00b question) 3: Can I/should I set up a business and then set up a trust to buy future properties, in order to claim depreciation? Is this a reasonable 'loop hole' to pursue? I fear that without being able to claim depreciation, the ability to get purchase positively geared property will be a lot harder. I guess that was the point though lol
1. Yes. Most likely. It may be less then previously. The Div 43 may be a good portion and that isnt affected. Worst case when you sell the amount you might have claimed may reduce CGT. A deferred benefit ? 2. Speak to a QS. They will guide your decision. Specific to that property. 3. Only a company can still claim depreciation BUT you must trade off loss of CGT discounts etc and loss of neg gearing etc. Doubt it would benefit. . Trusts are also affected by new rules.
