Depreciation Report

[testingw00]

Hey guys,

While we're on the subject of depreciation reports, I purchased a 2 bedroom unit, built circa 1973 late last year.

The place could do with a renovation - I think last renovations were done about 10 years ago which includes kitchen and paint.

Is there any benefit to getting a BMT depreciation report before tax time hits? Especially if the unit is at a point where it can definitely do with a carpet replacement, new paint and fittings?

I got a report done in the past for a new-ish property and that worked out quite well.

Thanks.

 

[BMT Tax Depreciation]

Hey guys,

While we're on the subject of depreciation reports, I purchased a 2 bedroom unit, built circa 1973 late last year.

The place could do with a renovation - I think last renovations were done about 10 years ago which includes kitchen and paint.

Is there any benefit to getting a BMT depreciation report before tax time hits? Especially if the unit is at a point where it can definitely do with a carpet replacement, new paint and fittings?


Thanks.

Yes, though the order in which you do things will depend on whether the property has been tenanted prior to and following the renovation.

For a start, you'd want to get a depreciation schedule regardless of whether you were going to renovate or not. Even on an unrenovated property we can usually find a couple of thousand dollars' worth of deductions in the first year alone, which is a benefit to most taxpayers.

If the property has not been tenanted then you may as well wait until you renovate to get the schedule done.

However, given that you've owned it for six months, I imagine that it has been tenanted. In this case, provided it will continue to be a rental, you should get a schedule before the renovations. This will allow you to do what's commonly known as scrapping: anything you dispose of in the renovation will have its unclaimed depreciation written off instantly and you can continue to depreciate the new assets from their installation date. This is a two-step process and incurs an additional fee with us but this is well and truly in proportion to the benefits you'll gain from the write-off. And trust me: you'll be surprised at the value we can put on that old oven and carpet.

Lastly, our fees are a claimable deduction in whichever financial year they're paid in, so that's another thing to think about as the 30th of June approaches.

 

[Befuddled]

Hey guys,

While we're on the subject of depreciation reports, I purchased a 2 bedroom unit, built circa 1973 late last year.

The place could do with a renovation - I think last renovations were done about 10 years ago which includes kitchen and paint.

Is there any benefit to getting a BMT depreciation report before tax time hits? Especially if the unit is at a point where it can definitely do with a carpet replacement, new paint and fittings?

I got a report done in the past for a new-ish property and that worked out quite well.

Thanks.

Yes. What do you have to lose?

http://www.bmtqs.com.au/our-guarantee

 

[testingw00]

Awesome, thanks for the detail response and the link to the Guarantee. Have used BMT twice in the past and both instances have worked out well.