Hi, we bought a property that was built in 2023 and rent it out straight away. Would the cost base be the purchase price? How do we calculate the depreciation expenses?
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Would the cost base be the purchase price?
- That would be one part of it
- Remember to also reduce the cost base if you claim capital allowance (Div 40)or capital works (Div 43)
- https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset
How do we calculate the depreciation expenses?
- Specifically for your property, don't know. Not enough information
- I think it would be best you engage with a professional such as a surveyor for a depreciation report and see a tax agent that you use the report correctly
- https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties/second-hand-depreciating-assets
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