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New Granny Flat - only DP schedule right?

Discussion in 'Accounting & Tax' started by JMica, 26th Jul, 2015.

  1. JMica

    JMica Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    58
    Location:
    Sydney
    Hey guys,

    I've read a lot of these threads and just want to make sure I don't miss anything...

    When you build a GF, my understanding is that you can get a depreciation schedule once it's finished & rented out and that you can claim a tax deduction on the borrowing costs for the loan taken out to organise paperwork and build the GF..

    Obviously when it comes to sell you can take the costs amount off the cost base for the purposes of calculating CGT

    It's that simple right ?
     
  2. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    102
    Location:
    Australia
    You can indeed depreciate the granny flat as you would any other property. Regarding CGT, it is only depreciation claimed on capital works that affects your cost base.
     
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