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Is it tax deductible and impact on future CGT

Discussion in 'Real Estate' started by skemp, 25th Dec, 2006.

  1. skemp

    skemp New Member

    20th Oct, 2006

    There are 3 partsof my question...

    I am renting a room in my apartment and last year, when the apartment was new, I received a good amount of money at the end of the tax year (after quite a few purchasersof new furniture etc).

    If I buy a TV and this is used by the tenant too, is this tax deductible? And if so, if I buy it half way through the year is this only applicable for, let's say, 6 months or is it calculated just on the expenditure in the specific tax year? I'm thinking do I buy it now or at the beginning of the new tax year, assuming same circumstances.

    Someone mentioned that renting a room could impact CGT in the future. How does this work? Is there a maximum period for which I can rent the room the first year/s? I imagine this could get compicated.

    Sorry for what will seem like a basic question and obvious answer for many of you.

    Many thanks.
  2. coopranos

    coopranos Well-Known Member

    11th Oct, 2006
    Dont really know enough about your situation to comment on CGT.

    With regards to purchasing assets and depreciating them, it is usually calculated based on how long you have owned it. If you purchase it half way through the year, you would get half a years depreciation. In practical terms it makes no difference whether you purchase it at the beginning or part way through the year - it is a timing difference only, you will still get exactly the same deduction.
    Having said that if the item is less than $1,000 you can allocate it to the low value pool and depreciate it at 18.75% in the first year, and 37.5% in subsequent years regardless of when you purchased the asset (even if you purchase on June 30 you can claim the full 18.75% for the first year).