2 depreciating schedules?

[dwv]

2 depreciation schedules?

We're buying an IP (new house) which is currently a display home and site office of the developer. They will rent for at least a year and after they move out, the kitchen, 2 bedrooms and study will be put in place. My question is how will the depreciation schedule be affected when the kitchen (oven, stove, sink, etc) is not yet around when house is assessed? Will we have to request another assessment when the kitchen is built? Around how much would each assessment cost?

 

[depreciator]

The developer will have the build cost for the house and the ATO want 'actual costs' used when available, so that's going to save you money on a QS inspection.

Amending a Schedule down the track is easy, if costs are supplied. We usually don't charge to do it (unless it takes us a bit of time). Even then, the most we charge is $50 for admin costs.

The kitchen etc they are bunging in later is tricky. I'm assuming this will be done at their expense i.e. you won't be paying to have it done? If you don't incur the expense, it's hard to claim it. Talk to your conveyancer/solicitor. What you might have to do is make sure in the contract there is something that states you are in fact paying for a kitchen etc when you buy the place, it's just that it won't be put in till the tenant (the developer) vacates. When the kitchen etc does go in, you can get the Schedule amended.

Give me a call if you like and I can tell you what specific information you would need to get from the developer.

Scott

 

[dwv]

The developer will have the build cost for the house and the ATO want 'actual costs' used when available, so that's going to save you money on a QS inspection.

Amending a Schedule down the track is easy, if costs are supplied. We usually don't charge to do it (unless it takes us a bit of time). Even then, the most we charge is $50 for admin costs.

The kitchen etc they are bunging in later is tricky. I'm assuming this will be done at their expense i.e. you won't be paying to have it done? If you don't incur the expense, it's hard to claim it. Talk to your conveyancer/solicitor. What you might have to do is make sure in the contract there is something that states you are in fact paying for a kitchen etc when you buy the place, it's just that it won't be put in till the tenant (the developer) vacates. When the kitchen etc does go in, you can get the Schedule amended.

Give me a call if you like and I can tell you what specific information you would need to get from the developer.

Scott

Thanks Scott. Will contact you as soon as everything pushes through.