Depreciation for properties over 50 years old

V

vmmg1992

Is there any point in getting a depreciation report for a property over 50 years old? As soon as it was purchased (last year) I renovated quite a bit of it, the kitchen, bathroom, replaced the hot water system, carpets, oven, fixed up a few tiles.

What can I claim other than my recent expenditures on the property?
 
In this case, it sounds like you would know the costs of most of the stuff that would go into a Dep Schedule. Your accountant will know what to do with those costs.
 
vmmg1992 said:
Is there any point in getting a depreciation report for a property over 50 years old? As soon as it was purchased (last year) I renovated quite a bit of it, the kitchen, bathroom, replaced the hot water system, carpets, oven, fixed up a few tiles.
Click to expand...

I was in the same situation 18 months back (pondering whether to get a schedule done for my 1940's property with minor renos that had just been made an IP) - and I'm glad I did. It was well worth it.
 
I bought a 100 year old house!

It was still worth it.

Things get renewed and replaced.

Plus, don't forget the scrapping if you just replaced quite a bit.
 
landlubber said:
Yes. Always. LL
Click to expand...

I've had two separate depreciation companies advise me in the last month that its not worth it for me :confused:

50 yr old house with kitchen & bathroom reno before i bought it. Some items that I have replaced (cooker/rangehood) already depreciating via my accountant.
 
I've had two separate depreciation companies advise me in the last month that its not worth it for me
Click to expand...

It's good to hear they aren't keen to take your money if they don't think it's worth it.
Your accountant is taking care of some of the Assets already.
How long have you owned the property for?
How old are the renos?
Got any photos?
 
Like all companies there are good and not so good...

I have used BMT on 2 properties built 1960/1970 I didnt think I would get much on either WRONG it well and truly covered the money I paid..

But my mum used another company and got next to nothing...I checked her report and they didnt even include the massive shed in her back yard which was obviously new, clothesline ect ect very dissapointing...

Not telling you who to use but telling you to use a company that all they do is depreciation
 
chindonly said:
depreciator will give you some good advice.....

I am pretty sure it will be worth it.
Click to expand...

One of the pieces of advice was from depreciator. The other from another well discussed provider of these services, so I'm comfortable it was accurate.


I'm OK with it, I was just responding to the comment that it ALWAYS pays to have the schedule.
 
Not sure if people are aware, but when you purchase an old house even one that has no depreciable value left in the building, all the internals eg curtains, carpet etc are all reset to zero age again so these will be depreciable.

This occurs everytime the house is sold and a new owner comes along. So yes even in the case of a 100 year old house, the new owner/investor gets to do depreciation report and depreciate carpets, curtains etc despite condition of these.

Also where you have done improvements, i.e. your renovation, this will certainly be depreciable.

IMO always worthwhile getting QS out and doing good report. I always use BMT and get discounts on every subsequent property I own and get done.
 
Quick questions guys regardin depreciation schedule (for my IP that is over 50yr old).

Currently i have tenants in the IP (3bedroom house), in my recently bought IP.

I didn't have time/forget to organise someone to do a Depreciation report.

What is the process involved, does someone have to go inside the house and inspect it?

How long does it take?

Sorry to ask these questions, as i need to organise with PM/Tenants if someone has to go in the house.

Regards,
k
 
Some businesses will do the depreciation schedule for free for you and you can figure out if it's worthwhile paying for it. You can then pay for the report and get the full details for your tax return.
 
rockDr said:
Not sure if people are aware, but when you purchase an old house even one that has no depreciable value left in the building, all the internals eg curtains, carpet etc are all reset to zero age again so these will be depreciable.

This occurs everytime the house is sold and a new owner comes along. So yes even in the case of a 100 year old house, the new owner/investor gets to do depreciation report and depreciate carpets, curtains etc despite condition of these.
Click to expand...

Just to be clear, this does NOT mean that the VALUE is reset to the original purchase cost.
 
In regards to the depreciation schedule, is it worthwhile to show the receipts of the renovations or other purchase for the property (eg HWS, carpet costs, etc)

Or is it better to just leave it to the QS to do the assessment (im just afraid the QS may under-quote the figure, or do the QS usually under-quote if they don't have receipts)

For example, you may get floor boards installed at mates-rates and therefore they use that figure and depreciate accordingly.

Regards,
k
 
You must log in or register to reply here.

Similar threads

K
IP depreciation question
Replies
4
Views
4K
Kokee
K
Cards
?Available for Rent? Tax Ded Question
2
Replies
20
Views
3K
marg4000
M
K
Question about stamp duty and depreciation
Replies
3
Views
2K
Paul@PFI
Paul@PFI
D
questions regarding allowed deductions
Replies
3
Views
1K
Scott No Mates
Scott No Mates
W
Depreciation report helpful after renovation or new build?
Replies
2
Views
982
BMT Tax Depreciation
B
Back
Top