Depreciation - Existing kitchen in PPOR

[sydprop]

Hi All,

We are about to replace a bathroom/kitchen in our PPOR (could be IP in future) - The existing bathroom/kitchen may have some depreciation left in them. Should I be bothered with quantifying this? Can I claim this later if I turn it into an IP? Is it worth it?

Suggestions welcome

Thanks

 

[Propertunity]

We are about to replace a bathroom/kitchen in our PPOR (could be IP in future) - The existing bathroom/kitchen may have some depreciation left in them. Should I be bothered with quantifying this?

This will all depend on 'how much' depreciation is left in them and when this PPOR will be turned into an IP.

If you are going to pull them out - then all you are doing is accelerating the claim to 'now' rather than over the years remaining. If it is not an IP now or next FY - then probably not worth it.

But it is worth doing a Depn Schedule for all the new work before it becomes an IP.

 

[marg4000]

Nothing that happens while the residence is your PPOR can be claimed, now or later. There is no point in quantifying the value of the demolished work while you are living there as it is not claimable in any form.
Marg

 

[Propertunity]

Nothing that happens while the residence is your PPOR can be claimed, now or later.

Marg, I don't think that is quite right, but I'm happy to be corrected.
If you do a new kitchen now and in 2 years hence the PPOR is made into an IP, my understanding is that you can depreciate the kitchen for the duration that it is an IP. But not while it is a PPOR as you've said.

 

[depreciator]

Marg is right that the value of demolished work is irrelevant if it happens while the property is a PPOR.

And yep, the new kitchen/bathroom can be claimed when the property becomes an IP.

Scott

 

[sydprop]

Thanks Marg - That's essentially what I was asking.

Nothing that happens while the residence is your PPOR can be claimed, now or later. There is no point in quantifying the value of the demolished work while you are living there as it is not claimable in any form.
Marg