Investment Property Changes

Proposed changes by Federal Government may impact on property investors.  The important date is 9th May 2017, and the impact will be on investors who are regarded as subsequent owners (purchasers of second hand properties). The main change will be on properties where contracts were exchanged after the 9th May 2017, as investors will not longer be able to claim depreciation on existing plant and equipment assets.  No change to investors in new properties.  There is some uncertainty regarding those who have changed their main residence purchased prior to 9th May 2017, and later decide to rent out.   Previously depreciation could be claimed as a deduction against the rental income if a depreciation report was prepared. 

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