depeciation on reverse cycle air conditioner

[WillG]

Hi,

I have a tenant who would like a reverse cycle air conditioner.

Can anybody advise what the depreciation on these would be? I have read somewhere it is about 20% per year over 5 years. Is this correct?

Also,

For a unit costing about $2k installed, how much extra rent would you charge? $5, $7 $10 per week?

Cheers

 

[WillG]

bump

anybody?

 

[BV]

willG

I am not sure on the details because my accountant is working this out
and I can't have a look because I haven't got my depreciation schedules with me.

I think $10/w is appropriate for aircon but as more and more IP's come with aircon these days it's hard to charge above market rate just for this.

The overall IP condition is what determines the rent.

cheers

 

[MissMuffitt]

We installed a reverse cycle AC in our house in Corio.
It cost a bit over $2500 installed.

I had a depreciation schedule done before it was installed. But I think my accountant is claiming it diminishing value. probably 5 or 10 years

I think I might need to ring the deprecation guy in Belmont and ask him about the length of time for it to be deprecated over.

The rent went up by $10 or $15 a week I think.

 

[depreciator]

Will, using the Diminishing Value method, you can claim the cost at 20% per year.

The first year will be pro rated, but let's assume the first year was 365 days.

So year one would be 20% of $2,000 = $400

Year 2 would be 20% of $1,600 = $320

Year 3 would be 20% of $1,280 = $256

When the written-down value falls below $1,000, the item can enter the Low Value Pool (if you are using the Pool) and the Pool rate is 37.5%.

Scott

 

[Witzl]

i wish my landlord was one of you guys... i just made my 2nd request for aircon, and ive got a feeling im going to need to grovel to get it.

 

[Carl]

thanks for the info depreciator. I too was interested in what the depreciation on an air con is. I am about to rent my place out and as well as putting in a new dishwasher and electric oven, it was suggested that i use the prospect of putting an a/c in next year as an incentive for renters.

With the rent i am asking and the renoes i have done on other parts of the house, they think i am aiming at the higher executive market in my area (is a townhouse).

 

[Gee Cee]

Bloody Tenants; New stoves, spas, dishwashers, etc , etc, etc
Next thing they will want the landlord to stay and do massages

Gee Cee Thinks. University market may be Ok to get into Now


Gee Cee

With the olive/ eucalyptus oils