bg-imgs

Topics on Rental Properties (4)

0 Comments

 

 

Applying the ‘carrying on a business’ exclusion 

Broadly, where the depreciation restriction applies, it will deny a depreciation deduction for assets otherwise depreciated over their effective life. It also applies for assets costing $300 or less and otherwise eligible to be wholly written-off in the year of purchase under S.40-80(2), and for assets costing less than $1,000 otherwise eligible to be depreciated as part of a low-value pool. 

The depreciation restriction for residential rental properties will not apply where a taxpayer uses residential premises to provide residential accommodation in the course of carrying on a business. 

For example, deductions for depreciation will generally continue to be available for a taxpayer that carries on a business of property investing (i.e., renting properties), renting holiday apartments and even operating a hostel or boarding house. 

In some cases, it will be clear that income derived from the relevant premises is being derived in the course of carrying on business (e.g., in the case of a hotel, boarding house, retirement village and aged care facility).  

 

 

  • Should you have any queries, please contact Tax Ideas Accountants & Advisers on +61 2 83181545 
  • Alternatively, you can book an appointment in ourlive calendar.  

 

Written by Panbo Ye

I help people discover POWERFUL unknowns in Tax Ideas | Wealth Strategies | Retirement Planning | Finance Solutions!

Leave a Reply

    Search form

    Categories

    See all

    Related Post

    Growth Is Just One Click Away

    Don't feel like calling? Just share your goals and situation & our expert will get in touch.

    Schedule A Meeting with "The Ideas"!

    How long would you like the meeting to be?