Why are depreciation records more important under CGT indexation?
Quick Answer
Depreciation records become more important under CGT indexation because the property's cost base and capital works history need to be understood clearly. Missing schedules can make CGT calculations harder and may lead to poor record keeping.
If CGT calculations place more emphasis on the indexed cost base, investors need better records.
Depreciation records help show:
Capital works deductions
Construction cost estimates
Renovation history
Division 40 asset values
Excluded second-hand assets
Property improvement history
Common property deductions
Year-by-year claims
Without these records, accountants may need to reconstruct historical claims and costs.
Koste.ai can help keep depreciation and cost base records connected to the property.