Kiwipaul

Anyone have a link to the depreciation rates for various items in an investment property. Things like cookers, carpets, lights, etc.

I've poked around the ATO site and found nothing relevant, and all the tax office gave me was depreciation rates for office and factory equipment.

Also if the property is in NZ can you use the NZ depreciation rates or do you have to use the Oz ones or better still can you decide which to use (fat chance I think).

renth

I'd be interested to see if you can claim depreciation on an overseas investment property on an Aussie tax return.

You're not allowed to negative gear it are you?

bondipom

Aren't fixtures and fittings only depreciable on a new property?

Kiwipaul

Your cannot as such but if your income from the investment property exceeds your spending on the property you can use the depreciation to reduce or eliminate an tax liability due from the income from the investment property.

You cannot use this loss against any Oz income only a similiar gain from abroard.

BUT you can accumalate losses in early years to offset against profits in future years once the rent has increased or interest rate has dropped.

Kiwipaul

NO as far as I know you can deprecite fixtures and fitting on any property used to generate an income. The investment market is not just for new properties it's for all properties.

You can just deprecite the value of house and fitting at the DV rate of 4% or itemise the fitting and depreciate at differing rate and some can be 50%.

Why do you think investment properties are so popular down here, it's because people on the top rate of tax can reduce their taxes by buying investment properties and use the loss and depreciation allowance to reduce their tax bill.

And so long as they keep the property for more than 12 months the max tax they pay on the capital gain is 24%.