Depreciation Schedule before or after reno?

[Fudge]

Hi Guys,

A quick one here hopefully.

I have heard that you should get a depreciation schedule done before you start a reno. Does this make sense?

I am just about to do a reno on a 1990 property, and was thinking of doing the schedule after the reno. I don't know now.

As I will be scrapping kitchens, toilets, baths, etc, how do I do a scrapping schedule. I have heard that I can write off the stuff I am ripping out.

What are the best steps to take?

What do I have to do to claim everything......legitimately.

Thanks in advance.

F

 

[Propertunity]

A warning on scrapping schedules

Fudge,

Have a read on this thread where scrapping schedules were discussed:
http://www.somersoft.com/forums/showthread.php?t=56056&highlight=scrapping

 

[Fudge]

Fudge,

Have a read on this thread where scrapping schedules were discussed:
http://www.somersoft.com/forums/showthread.php?t=56056&highlight=scrapping

Thanks Prop

F

 

[Michael.Knight]

Okay so Ive alreay done my reno, and now realise that I can get a scrapping schedule done...

Can they still do a scrapping schedule, even tho my reno was finished 6 months ago?

I do have photographic evidence...

 

[depreciator]

It's all in the timing, Fudge.
Based on the Ruling I got, it would appear that the ATO want people to rent out i.e. earn some money from Assets (stove, carpet etc) before tossing them out and claiming the residual value.
I don't believe this is the case for Capital Works i.e. structural stuff. So there will be something in that kitchen etc you're tossing out.

Michael, it's going to depend on what photos etc you have.

Talk to a QS. Don't use the term 'scrapping Schedule' because it's not a term the ATO, or your accountant, or even many QSs will have heard of. Just tell them you want to claim the value of Assets and Capital Works you want to dispose of.

I'm not going to be in the office today, but if you want to have a chat about this stuff, call me Tuesday.

Scott