Tax Implications Of Buying an IP Fully Furnished

Discussion in 'Accounting & Tax' started by Chris C, 17th Jun, 2008.

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  1. Chris C

    Chris C Well-Known Member

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    Sorry to continue to bombard these forums with newbie questions but I was just wondering what the tax implications were for buying an IP fully furnished?
     
    Chris C, 17th Jun, 2008
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Unless the vendor supplies invoices for all furnishings (unlikely), you'd want to have a depreciation schedule done immediately to assess the value of the furnishings. The claims for depreciatoin will help with cashflow (although you will have to fork out more money in the future to replace worn or damaged goods!).

    Not sure of any other tax issues for furnished IPs, unless you are operating short leases (under 3 months I think ?), which makes it a different class of property and subject to other taxes (like GST?).
     
    Simon Hampel, 17th Jun, 2008
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  3. Chris C

    Chris C Well-Known Member

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    Who decides on what the value of the furnishing are?
     
    Chris C, 17th Jun, 2008
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    If you've bought them yourself, you use your receipts.

    Otherwise if they came with the property, you get a depreciation schedule done by a quantity surveyor.
     
    Simon Hampel, 18th Jun, 2008
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