Recent content by MCGQS

Your accountant is best to advise whether it's a capital improvement or repair. If it's a capital improvement you'll be able to claim 2.5% of the cost each year for 40 years. If it's a repair you should be able to write off 100% of the value in that financial year.

A valuer once explained to me some specifics of the process of valuing land as per valuers generals standards. My understanding is that they'll use land sales data from up to 18 months ago. I'm not sure this is the case, but of course sometimes very little happens in 18 months, othertimes it can...

Hi rajnhets, The cost to repair the deadlock and stove (including cost of engaging someone) can be claimed under repairs and maintenance with your accountant. If you're getting new items, then you'd depreciate the total installed value of the item, rather than claim as a repair. Whether your...

We wrote a blog on this topic, with reference to the depreciation deductions. It might be of interest to you: http://www.mcgqs.com.au/blog/display-homes-property-investment/ Regards, Mike

Hi shanematt, The granny flat construction is certainly depreciable, so long as it will be income producing. The same as if you were to rent out a bedroom in your house. Site clearing in preparation for the construction is not a depreciable expense, however the fence will be. If it's dividing...

Hi Dangoodsir, You'd be able to claim the total installed cost of the split system in the financial year in which you incurred the cost. The effective life of a residential split system is 10 years. So in the diminishing method you'd be claiming 200 / 10 = 20%. So, 20% of the opening...

Hi Jackbak, Based on the information you've provided I would expect the report to be worthwhile. Most QS firms will offer a guarantee that you wont pay unless it's worthwhile. Given that you purchased it in May 2010 there would be some back claim (unless you occupied it) that would bump up...

Hi Ace, It's been a little while since I've seen a Mitbrand report, but I do know the BMT report intimately. To be honest, I don't want to make any negative comments about our competitors despite some of my private views. In fact the Australian Institute of Quantity Surveyors (AIQS) has taken...

Hi Ace in the Hole, There's an argument to say (certainly not mine) that if you're not going to hold a property for ten years, then why get a 20 year schedule? Even if you are going to hold it for twenty years, you can use the opening values and rates to calculate the following years...

I concur, sounds more trouble than it's worth. It's depreciable as a plant and equipment item under garbage disposal units so talk to your accountant about scrapping the residual value. Hopefully it was assigned a value in your depreciation schedule.

A Quantity Surveyor is qualified to estimate construction costs, where the real costs aren't known. If cost information is available, then you can only claim for what you have paid and we need to use actual costs. It's a bit of a similar story where owners want to claim works they have done...

Hi Rookie, Yes you'll need a quantity surveyor to work out the depreciation on the fixtures and fittings, or Division 40 items. The depreciation deductions will depend on the types of Division 40 items, and with a unit you'll be able to make a claim on the common areas as well. So it really...

In our experience, more often than not there is enough residual value in the plant and equipment items to justify a depreciation schedule. It's also unusual to find a property from the 1950's with no work done to it at all. It may have had a bathroom or kitchen update which will help. Most...

Completely agree with Ian. Have a depreciation schedule prepared and then rent the property as is, to be able to claim scrapping deductions, you need to rent the property first and then you can claim the residual value of the old items as they go in the bin. Then once you have a tenant...