Depreciation Question

[pulse]

Now this is a question that has been partially covered before.

I've done some renovations in which I did a large component of labour as well as some help from several "cash on weekends" tradesmen and a few missing receipts from auctions/Trading post etc.

My accountant says that the use of a QS schedule is OK as a substitute for actual building values if I have actually spent more than what I have evidence for.

What is the consensus on this?

Cheers
Pulse

 

[Mry]

I think that you would be attempting to defraud the tax office by not keeping the records that you are required to keep when performing renovations. I'd also worry for the poor QS guy attempting to work out the costs when it was actually you trying to capitalise the value of your labour and cash jobs into the property to gain tax advantages.

 

[coastymike]

I agree with Mry. The majority of tax audits for individual and small business taxpayers, according to reliable sources I have spoken to,come from the ATO "dob-in" line. All it would take is to do as you have been suggested, tell one of your mates down the pub, then a year later you have a big fall out with that mate, and next thing they ring up the ATO "dob-in" line just to get back at you.

People might think this sounds fanciful but it's the reality. Disgruntled employees, spouses, friends, etc. who have a nasty side to them provide a wealth of information (free of charge) to the ATO.

 

[pulse]

Thanks Guys, I felt that way too.

Regards
Pulse

 

[WashingtonBrown]

I would say..

At the end of day...isn't your benefit the fact you have paid minimal cost for the work to be done?

To then claim the market value of the work would surely be "Seinfeld" double dipping - No?

Just be happy you had the work done cheaply!!!!

Regards