Thanks for your comment.

Capital gains tax is calculated by deducting the proceeds from the cost base at the time of selling. There is a fifty per cent CGT discount for properties owned longer than twelve months.

In your scenario the property may fall under the ‘home first used to produce an income’ rule.

You may find this article on capital gains tax helpful: https://www.bmtqs.com.au/maverick/mav-52-depreciation-and-cgt

Because we’re only specialised in capital gains tax as directly related to tax depreciation, we recommend consulting an accountant or financial advisor.

Thanks,
The BMT Team.

Thanks for your comment.

Once a property has been used to generate income, capital gains tax (CGT) will need to be calculated once the property has been sold. Properties owned for longer than twelve months are eligible for a 50 per cent discount on CGT.

There are partial exemptions available when a property was first your principal residence then used for generating income, which does in essence pro rata the time periods when calculating.

We recommend discussing this scenario with your accountant before making decisions.

Thanks,
The BMT Team.

Thanks for your comment.

The one-off cost covers the entire process of ordering and receiving a BMT Tax Depreciation Schedule.

A BMT schedule includes a site inspection, so all claims are maximised and fully compliant with current Australian Taxation Office (ATO) regulations. The report also provides both the prime cost and diminishing value methods of depreciation.

Schedules can be amended as renovations and additions are made for a fee depending on the size or amount. You also have the option of receiving your schedule digitally which is emailed to you, a paper copy, or both.

The cost of a BMT schedule is 100 per cent tax deductible and lasts the life of the property (40 years), so you only need to order one per property.

BMT Tax Depreciation are the industry experts in tax depreciation, providing quality and compliance to clients every step of the way.

Thanks,
The BMT Team.

Thanks for your comment.

No, you don’t have to pay back any of the depreciation deductions you have claimed in previous years, but the Division 43 claimed will be used in the capital gains tax calculation and may increase this aspect. You will be eligible for the 50% CGT discount if held for more than 12 months which offsets the effect of adding this back in so that claiming depreciation remains beneficial in the long run.

Thanks,
The BMT Team.