Depreciation schedule - IP to PPOR in 2yrs

Discussion in 'Accounting and Tax' started by Dean2012ad, 9th Nov, 2013.

  1. Dean2012ad

    Dean2012ad DIY Investor

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    Hi,

    Just wanting to get your thoughts/opinions about whether it is worth getting a depreciation schedule on a 30 yr old IP that I will acquire in December.

    With: original kitchen and tile + parquetry flooring, 10yr old carpet in bedrooms, 1 x air RC air conditioner, 2006 solar HWS, 2 x small sheds and a non-approved granny flat).

    which I plan to make my PPOR in 2 years...?

    Obviously CGT when sold is increased by whatever I claim, but I am wanting to assess a depreciation schedule's value in this circumstance.

    Cheers
     
    Last edited: 9th Nov, 2013
  2. rabidz

    rabidz Member

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    i think it still worth it.
     
  3. Colin Rice

    Colin Rice Perth Mortgage Broker

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    I believe so.

    A DS report will set you back circa $500 and you may be able to back date it but best to check with your accountant.
     
  4. travelbug

    travelbug Member

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    Just Email depreciator on this forum www.depreciator.com.au
    with details and he will let you know whether it's worth doing or not.

    Most companies guarantee you'll get your money back the first year (otherwise they recommend not doing it).
     
  5. syba

    syba Quantity Surveyor

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    If the house is 26years old or less (ie built after July 1987), then you will be able to write off the house so definitely worthwhile (I know you said 30yrs, but just mentioning this in case you were 'rounding up').

    If the granny flat was built after that date, then again it is definitely worth doing.

    If both of these are original, then possibly not. You'd still get some depreciation from the things you mentioned, but it may only be $500-600/yr (and that is just a deduction - after tax be a refund of ~$200). However, if this is the case there is nothing stopping you/your accountant putting some values on it yourself. It's not as good as a QS doing it, but if you're only talking about 4-5 items you'd probably be fine. However if any of the buildings were built after 1987, definitely get a QS to do it.
     
  6. Dean2012ad

    Dean2012ad DIY Investor

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    Thanks Guys,

    I will prolly use depreciator for the DS, but will talk to Scott first...

    The builder that did the building report reported approx age of building as 20yrs.
    The owner said they lived there for approx 30 years and took 4 years to build (while living in granny flat) so conveniently that would have the build year as 1987...
    How do most QS calculate build date..?
     
  7. syba

    syba Quantity Surveyor

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    Usually easiest/quickest way is for you to contact your council and find out the date the DA, Construction Certificate was issued by council for the works (and any other dates they may be able to provide, such as Occupation Certificate - better to have too much info than not enough).