Depreciation on unit/apartment?

[MFG]

Hi,

I am curious about depreciation of unit and apartment. Since there is no "land" attached to the purchased price, do we depreciate the whole sale price+stamp duty etc? or is depreciation even not allow?

cheers,
Scott

 

[The Y-man]

Huh???

Depreciation is never on the land as far as I know? It is ALWAYS on the building and fittings/fixtures....

The Y-man

 

[The Y-man]

... do we depreciate the whole sale price+stamp duty etc?

Um..... I think you need to look at how depreciation is calculated.... As I understand it, it has nothing to do with sales prices. It has a lot to do with the cost of building a place.

The Y-man

 

[MFG]

Um..... I think you need to look at how depreciation is calculated.... As I understand it, it has nothing to do with sales prices. It has a lot to do with the cost of building a place.

The Y-man

Thanks Y-man,

if u purchased a unit/apartment, are you able to have a depreciation schedule?

cheers.
Scott

 

[Rob Williams]

Thanks Y-man,

if u purchased a unit/apartment, are you able to have a depreciation schedule?

cheers.
Scott

I'm not Y-Man, but I'll have a go ..
You can have a depreciation schedule done for the fixtures and fittings.
If the building is built post '85, you can get a quantity surveyor prepare a schedule based on the construction cost so you can claim the building wrote off.
You really should make contact with someone like Depreciator (aka Scott) on this forum. There's no need to have the QS live and work in the same city as you or the property.

 

[MFG]

I'm not Y-Man, but I'll have a go ..
You can have a depreciation schedule done for the fixtures and fittings.
If the building is built post '85, you can get a quantity surveyor prepare a schedule based on the construction cost so you can claim the building wrote off.
You really should make contact with someone like Depreciator (aka Scott) on this forum. There's no need to have the QS live and work in the same city as you or the property.

thanks Rob.

 

[Neil Richardson]

Yes Rob has hit the nail on the head.

Units or houses - It make no difference to the depreciation able to be claimed. it's all about the cost of construction.

Be sure to get a QS to inspect the property. In respect of the new Tax Agents Services act, The AUSTRALIAN INSTITURE OF QUANTITY SURVEYORS states:

"The AIQS opinion on the meaning of this clause would include a requirement to inspect any property for which an estimate for the purpose of tax depreciation is prepared. The AIQS would not consider the practice of clients undertaking measurements and analysis of their own residential rental property to complete an online form, under "self‐assessment" rules, falls within the definition of reasonable care in ascertaining a client's state of affairs."


Cheers

 

[Jebb]

So would a 2-bed constructed in the late 80s have bugger all depreciation if I got a schedule done today? It wouldve cost peanuts to build back then.

 

[depreciator]

Yep, probably bugger-all on the building. Could be reasonable depreciation in the Assets. Depends what's there.

 

[Jebb]

By assets you mean fixtures? Like aircon, stove, water heater? Its just a standard 2-bed townhouse, nothing much there at all. Was thinking about getting a schedule done, but assumed that it wouldn't be worth the cost given the property was constructed mid to late 80s.

 

[depreciator]

Got any photos?

 

[Jebb]

not on hand unfortunately. Everything is as standard as you can get for its age

 

[Rags]

I suggest you ring a depreciation expert & ask them if it is worth doing.I used a company called Deppro myself only cost me about $550 & you can claim that cost as a expense as well and was very pleased with the result & they stated they will do it for free if my depreciation came in under the cost of doing one.My place was a 3 bed villa & i thought the same as you "can't be much to write off here" but you will be amazed at what you can claim.

Btw Jebb if the property is after 1985 you can claim the building from my understanding it's claimed over 40years not sure on the %(i think 2% py)but i could be wrong.Even if it was built in 85' you still would have 15 odd years on the building itself as well as the fixtures i think you would get the $$$ back for the depreciation schedule easy but like i said ring the professionals & find out.

 

[Jebb]

Oh, I'm a non-resident for tax purposes too, so cant claim more than I'm earning from property, but can carry it forward into the future. The property is almost cash flow neutral for me as it is.