Deduction

[WebBoard]

From: Mike .


Construction Cost Write off
From: Dave!!
Date: 25 Oct 2000
Time: 20:12:42

Hi Everyone, I was wondering if anyone knew of a quick and easy way to find at the date a property was constructed. I've read that the date the foundation is poured is the relevant date for tax assesment purposes. Thank's all. Dave.

 

[WebBoard]

Marina.L

Reply: 1
From: Mike .


Re: Construction Cost Write off
From: Marina.L (Peter.L's wife)
Date: 25 Oct 2000
Time: 21:52:57

The claim begins to be allowable at the point in time when the building is first used or maintained ready for use for income producing purposes. Deduction is not allowable until the construction of the capital works has been completed. Eg. construction starts in March 99 and is completed and ready for use for income producing on the 24/2/00. The taxpayer can claim deduction for only 127 days. Cost of construction 2 mil- 2mil&2.5% (127/365)= 17397 claim in the 1st year.

I am a Tax agent and I invest in Ips and I have done the research a hundred times. You would be surprised that a lot of accountants that do not specialise in Ips do not know this or anything else for that matter. Some of the ip returns I come across are shocking.

 

[WebBoard]

AndyM

Reply: 1.1
From: Mike .


Re: Construction Cost Write off
From: AndyM
Date: 25 Oct 2000
Time: 22:17:45

Hi Marina L, hi all, - Help! Marina, are you a Melbourne Accountant? I am desperate for an accountant who is aware about ip's and the related deductions. I've had some terrible experiences, the latest was a discussion with my fiance's accountant who told me that regarding the new ip we just purchased, that we could not depreciate the cost of fixtures and fittings over five years, but we could only depreciate the cost of the whole package at 2.5% over 40 years. This was the same accountant who said to my fiance "Oh you've earned a lot less this year than last year..... To which she replied "No that's the tax I paid for the year!" I'm sick of relying on the so called professional who hasn't got a clue. Can anyone help? Many thanks, love the site

Thanks AndyM

 

[WebBoard]

The Wife

Reply: 1.1.1
From: Mike .


Re: Construction Cost Write off
From: The Wife
Date: 25 Oct 2000
Time: 22:27:37

Hiya, May i suggest, that you get what you pay for? Does your accountant charge you $350.00 an hour for advice?

 

[WebBoard]

Marina.L

Reply: 1.1.1.1
From: Mike .


Re: Construction Cost Write off
From: Marina.L
Date: 26 Oct 2000
Time: 07:10:30

Probably not 350 pH. More like $150 -200 per tax return. That is what these mere morsal accountants charge for doing a tax return with an IP in it (mind you Its probably all wrong). The majority have not got Ips and thus do not know what they are doing.

 

[WebBoard]

?

Reply: 1.1.1.1.1
From: Mike .


Re: Construction Cost Write off
From:
Date: 26 Oct 2000
Time: 07:55:28

What a generalisation Marina L

 

[WebBoard]

Marina.L

Reply: 1.1.1.1.1.1
From: Mike .


Re: Construction Cost Write off
From: Marina.L (Peter.L's wife)
Date: 26 Oct 2000
Time: 08:26:26

HI there and what is your name?

 

[WebBoard]

AndyM

Reply: 1.1.1.1.1.1.1
From: Mike .


Re: Construction Cost Write off
From: AndyM
Date: 26 Oct 2000
Time: 13:45:21

You have not answered my query! I have no proplem paying for good advice (ala RK's advice) but what I'm asking is "does anyone know of one in Melbourne?"