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Investors lose: changes to negative gearing, depreciation

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Your Investment Property | 10 May 2017, 10:42 AM Agree 0
Investors will lose $800m worth of tax benefits after changes were announced to negative gearing and depreciation in the Federal Budget last night.
  • John | 10 May 2017, 02:12 PM Agree 0
    What is to stop investors buying a shell unfurnished property then buying new items,dishwasher,air con,carpets etc,etc, then depreciating them???
    • Alan | 10 May 2017, 06:16 PM Agree 0
      John, if they do that, then it is totally OK, and they have to incur cost for those new items. What this new rule disallow is to claim big tax deduction on second hand items that were acquired at almost no cost from previous owner.
  • Sam | 10 May 2017, 02:34 PM Agree 0
    John, try finding a "shell" - all existing "secondary" residential investment properties have fixtures. Investors will be ok with new builds as they can claim depreciation on the total capital cost. Quantity surveyors preparing depreciation schedules on secondary stock will be in trouble unless they have a commercial property business.
  • Christine | 11 May 2017, 09:41 AM Agree 0
    So the buyer could enter into separate contracts with the seller - one for the property, and one for the fittings? ie remove the fittings component from the sale price of the property and purchase them separately?
    • Al | 11 May 2017, 05:29 PM Agree 0
      No, they will have to be new fixtures purchased by the landlord - what you are suggesting would not be legal under the new rules.
    • Ces | 02 Jul 2017, 10:21 AM Agree 0
      So what is the difference of buying second hand fittings from say builders auctions or online to put in the property rather than buying new from a shop, dose that mean you can't depreciate
  • Charlie | 06 Jun 2017, 08:01 PM Agree 0
    If the acceptance of offer is dated prior to the 9th of may and settlement date is post this date. Are you still covered by the grandfather clause?
  • Chris | 10 Jul 2017, 10:27 AM Agree 0
    Will travel to clean and restock a short term rental property (ie. week or weekend tenants) ready for next tenants be claimable?
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