Depreciation Schedules Summary?
- Thread starter AndrewS
- Start date
Hi Andrew
The tax office allows a very attractive depreciation (tax deduction)on both the building and the chattels within an investment property. However, to access this depreciation you will need someone to tell you what the items would have costoriginally, and, what is left in their value.
The tax office have suggested that only a couple of people are able to give you this advice and the most prominent one is a QS.
If the building was built after July 1985, then, the building is depreciated as an allowable tax deduction. If the building was built before this date then there is no tax deduction for building depreciations unless renovations have been undertaken since.
Dale
The tax office allows a very attractive depreciation (tax deduction)on both the building and the chattels within an investment property. However, to access this depreciation you will need someone to tell you what the items would have costoriginally, and, what is left in their value.
The tax office have suggested that only a couple of people are able to give you this advice and the most prominent one is a QS.
If the building was built after July 1985, then, the building is depreciated as an allowable tax deduction. If the building was built before this date then there is no tax deduction for building depreciations unless renovations have been undertaken since.
Dale
Hi Andrew,
Here is a recent QS report on one of my IPs in Ipswich purchased this year for $122k. Pre 1983 so no building write/off.
$860 - items $300 or less (claimed straight out of 'Sundry'
expenses along with the QS fee)
$2,530 - items $1000 or less (claimed as low value pool @ 18.75%
1st yr then 37.5% thereafter)
$3,658 - items over $1000 (claimed from date of property purch
@ eg 22.5% for Curtains/Drapes)
$7048 - Total. QS negotiated fee was only $165 GST inc.
Don't forget to subtract the contents amount, $7048 here from the purchase, $122K. Why? Because a portion of the stamp duty & solicitors fees you paid on the $122k is tax deductable against the contents amount.
Cheers Brenda
Here is a recent QS report on one of my IPs in Ipswich purchased this year for $122k. Pre 1983 so no building write/off.
$860 - items $300 or less (claimed straight out of 'Sundry'
expenses along with the QS fee)
$2,530 - items $1000 or less (claimed as low value pool @ 18.75%
1st yr then 37.5% thereafter)
$3,658 - items over $1000 (claimed from date of property purch
@ eg 22.5% for Curtains/Drapes)
$7048 - Total. QS negotiated fee was only $165 GST inc.
Don't forget to subtract the contents amount, $7048 here from the purchase, $122K. Why? Because a portion of the stamp duty & solicitors fees you paid on the $122k is tax deductable against the contents amount.
Cheers Brenda
Originally posted by Brenda Irwin
Don't forget to subtract the contents amount, $7048 here from the purchase, $122K. Why? Because a portion of the stamp duty & solicitors fees you paid on the $122k is tax deductable against the contents amount.
Cheers Brenda
Brenda,
Sorry, I did not get the last bit. Could you please elaborate a bit on this?
Cheers,
Lars
Depreciation clarification
Just for clarification,
If a property were built prior to 1985, then I am only able to claim depreciation on internal items such as carpets or floor coverings for example, but not the building itself unless renovations have taken place fater 1985?
Thanks for your replies folks. Most appreciated!!
Regards
AndrewS
Just for clarification,
If a property were built prior to 1985, then I am only able to claim depreciation on internal items such as carpets or floor coverings for example, but not the building itself unless renovations have taken place fater 1985?
Thanks for your replies folks. Most appreciated!!
Regards
AndrewS
