Can I claim scrapping on yard demolition without prior QS Schedule

T

theperthurbanist

Hi guys,

I recently cleared a rear block (with a lot of stuff on it) before subdividing, and was wondering if I have left it too late to claim depreciation/scrapping on the demolished/removed items. I (foolishly) didn't get quantity surveyor schedule done before demolition, much of the stuff was quite old, but all things considered I would think the total value might add up to quite a bit.

So my questions are:

1) Can I claim scrapping on outdoor assets where a quantity surveyor hasn't done an audit prior to their removal?

2) If so, what proof do I need of each asset's existence? Will photos suffice. I demolished/removed most of it myself so don't reall have evidence of the demolition aside from a few ordered skip bins. Also how would I prove age (frankly I have no idea for most of it)?

3) if claimable, would I now need a QS Schedule, or could I/my account produce this ourself.

4) Is any of this likely to even be worth it?

To assist with answering the above, a rough list of what has been scrapped (with rough age in brackets) is as follows:

- Garage, brick + tile, single car (40yr)
- Plastic water tank. 8 cubic metres (3-5yr, as new)
- Pergola, metal. 3 x 4.5m (5-10yr, good condition)
- Pergola/awning, metal. 2 x 3m (10+ yr)
- Shed. 2.5 x 4m (5-10yr)
- Shed/chicken coop 1.5 x 2.5m (10+ yr)
- Fencing, asbestos. 75m. (40yr)
- Bore, inc pump etc. (40yr. Pump/parts likely newer)
- Extensive surface irrigation
- Extensive planting
- Brick paving. 20sqm. (age unknown)
- 2 x large concrete fish ponds with shade structures and pumps/filters. 2x4m and 2x2m. Pond and structures likely homemade. (age unknown)

I'm hoping I didn't miss the boat on this one (or that the above isn't completely worthless anyway)! Any advice would be greatly appreciated.

Thanks!
 
The residual value of anything built post 85 would have been claimable (assuming the place was rented out before demo and will be rented out after).
I reckon you've left it too late, though. A QS isn't going to put values on stuff he hasn't seen.
There might have been a tax deduction in the disposal of the asbestos fence, too, but it's also gone.
Scott
 
Hi Scott thanks for the quick response. So to answer 1 & 3 a QS Schedule would be requitred to claim the scrapping (whether done before or, less likely, after the demolition)? I only ask as I am aware an accountant can do their own simplified depreciation schedule for calculating normal depreciation (though this still raises the question of whether an account would put a value on something based on photos alone).
 
FYI I was intending on claiming the removal of the asbestos fence as a capital expense for the house I am building on the rear block, as this removal was undertaken as part of the construction contract.
 
You don't need a Dep Schedule to claim the value of stuff disposed of, but somebody needs to put a value on the structures (Capital Works). Accountants can't estimate the cost of Capital Works.

I only ask as I am aware an accountant can do their own simplified depreciation schedule for calculating normal depreciation
Click to expand...

If you do a new build and have all the costs, an accountant can work out the depreciation. Anybody can, for that matter. It's only when the cost of Capital Works needs to be estimated that things get tricky.
 
theperthurbanist said:
FYI I was intending on claiming the removal of the asbestos fence as a capital expense for the house I am building on the rear block, as this removal was undertaken as part of the construction contract.
Click to expand...

There is a specific tax deduction for environmental protection costs such as asbestos removal. This needs specific tax advice. It's often ignored by tax agents.
 
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