Depreciation without a Quantity Surveyor's Report?

[Ragnaer]

I have just purchased a property and am renting it out for 7 months before moving in.

As the property will not be an investment for long, I don't know if it is worth getting a quantity surveyors report for the depreciation schedules?

If not, am I able to self-assess depreciation?

The property was built 50 years ago, so is pre-1985 so cannot claim for building anyway, although there was an extension/renovations done about 10 years ago.

Also there was a pool built 3 years ago with a value of $32,900, a hot tub, built in dishwasher, and probably a number of other depreciable items which I'm not sure about.

Just wondering everyones thoughts on whether a QS report would be good givin only 7 months rental, or how I would go about self-assessing depreciation?

Thanks for the help !

 

[depreciator]

You know what the pool cost, so that's good.
And tax payers can value Assets themselves e.g. carpet, stove etc (they need a written-down value. In this case, think of their second hand value.)
The 10 year old extension/renovation will be the problem. You can't have a stab at that. But if it wasn't much, at 2.5% for 7 months maybe it's not worth worrying about.

 

[Ragnaer]

Hi Depreciator, thanks for your quick reply.

The $32,900 for the pool was the estimated value from a Building Permit which was included in the Section 32, is this suitable for caculating depreciation?

How do I go about figuring out the written down value of other items like carpet, stove etc? Can I do research on the internet to find something similar and use that as the base?

Also, would all these items be 2.5%p.a. and am I able to use the diminishing cost method instead of the prime cost, so as to claim more?

Thanks so much for the help !

 

[depreciator]

A building permit is often a reasonable guide for building cost.
But the pool has associated pumps and equipment that can be depreciated separately (and more quickly than the pool).

How do I go about figuring out the written down value of other items like carpet, stove etc? Can I do research on the internet to find something similar and use that as the base?

It's your estimate of their second hand value. You won't much of any help on the internet for that.

Also, would all these items be 2.5%p.a. and am I able to use the diminishing cost method instead of the prime cost, so as to claim more?

2.5% is for building work - like a pool and an extension. Assets depreciate much more quickly. And there is the Low Value Pool.

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