Ask Mark Withers, director of Withers Tsang & Co questions relating to Tax and Asset Structures
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
I am about to rent out my newly renovated family home on a long term basis. I know you can't depreciate the building but can I depreciate the following items - fences, electric gate, painting and decorating, HWC, retaining walls / planters, decks, kitchen cabinetry? Also, how do I value these for depreciation?
This relates to the treatment of GST on a mixed residential/commercial purchase. What is the position if I purchase such a property from a GST registered vendor, with I myself being GST registered?
The property has a restaurant and a two bedroom residential apartment. They are both leased to the same entity (the restaurant). I would be leasing the property to that GST registered entity.
Is it safe to assume then that there is no GST payable on the entire purchase and that I charge and recover GST on the OPEX? Is it up to the leasee to make any apportionment if the GST cannot be claimed as part of the OPEX?
If I was to partner with someone to form a property trading company (pay tax on profit), then will the rental properties I bought before under my own name be subject to tax on capital gain? All the properties I hold have been held for more than two years and I would like to keep them separate from the trading company.