depreciation schedule for 1970's property
- Thread starter rabidz
- Start date
I'd still get a depreciation schedule done... you might be surprised what you can claim, even for a 1970s property. I had one done on my IP that was built in the 1950s and the deductions came back a fair bit more than what I expected (it was mostly for plant and equipment, rather than building). You will surely have some plant and equipment you can claim for depreciation.
Any repair or renovation work done on the building done after 1985 will be claimable for depreciation as well.
Any repair or renovation work done on the building done after 1985 will be claimable for depreciation as well.
^ ^ what he said.
HI,
On the subject of depreciation schedules, some clients I have spoken to have advised me that their accountants advised against getting a DS?
Reason I believe is that it effect CGT when you sell. Of course providing you do sell.
If anyone has any views on this I would welcome your thoughts.
Cheers,
On the subject of depreciation schedules, some clients I have spoken to have advised me that their accountants advised against getting a DS?
Reason I believe is that it effect CGT when you sell. Of course providing you do sell.
If anyone has any views on this I would welcome your thoughts.
Cheers,
Not true.
1. A pre-1986 has a NIL Capital allowance unless structural and building improvements are post-86. (This is a simplified view - It is far more complex) Only CA is a CGT add Back.
2. The capital allowance add back only applies to some properties !!! This is a common DIY mistake a reader of SS could easily fall for. Its often 13 May 1997....Even many accountants assume all properties where you have claimed Cap Allowances have an add back. This is incorrect. Even ATO's own publications can give this impression and I rarely see a "exception" mentioned on this forum.
You must exclude from the cost base of a CGT asset (including a building, structure or other capital improvement to land that is treated as a separate asset for CGT purposes*) the amount of capital works deductions you have claimed or can claim in respect of the asset if:
- you acquired the asset after 7.30pm (by legal time in the ACT) on 13 May 1997, or
- you acquired the asset before that time and the expenditure that gave rise to the capital works deductions was incurred after 30 June 1999.
Our first investment property was built in the 1970, we purchased it in 2000. It still had the original 'burn orange' kitchen.
We completed a cosmetic renovation on the property (including resurfacing the kitchen) which cost about $5k. The depreciation report gave us $15k in tax deductions, including thinks like sewage pipe replacement which wasn't something we'd even known about.
I've yet to see a depreciation report on any property that didn't pay for itself several times over.
We completed a cosmetic renovation on the property (including resurfacing the kitchen) which cost about $5k. The depreciation report gave us $15k in tax deductions, including thinks like sewage pipe replacement which wasn't something we'd even known about.
I've yet to see a depreciation report on any property that didn't pay for itself several times over.
Anyone that have the same experience (owning 1970's property).
Any advise is much appreciated.
Thanks.
We do hundreds and hundreds of schedules on pre 85 built properties and most of our work comes via accountants.
The amount of depreciation is going to get down to what is in the property and how long you have owned it for.
Email me Monday with some photos and I'll tell you what you might get and then you can make an informed decision.
Scott
The amount of depreciation is going to get down to what is in the property and how long you have owned it for.
Email me Monday with some photos and I'll tell you what you might get and then you can make an informed decision.
Scott
Will do, Scott. Thanks.
