Depreciation

From: Geoff Whitfield


I’ve just received the quantity survey for the house I’ve done work on recently.

A couple of items appeared to be missing- but I’m not sure of my ground here.

The property consists of three cottages.
There was depreciation of plant for carpets and cork floor tile- but nothing for the ceramic tiles in one of the units- which has ceramic tiles throughout, including $1500 worth of tiles which I’ve put in.

Also there was no mention of painting. I know it’s not a repair- but should that have also been included in depreciation of plant?

Thanks for any help.
 
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Reply: 1
From: Rixter ®


Geoff,
Why dont you go back & ask the QS why? Its alot easier than asking here...as we dont have the facts like you & your QS do.
Happy Investing,
Rixter :)
 
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Reply: 1.1
From: Manny B


Hi Geoff,

Quantity surveyors can get it wrong (it has happened to me), but if you call him he may either correct it OR tell you why he hasn't included it... I personally think paint & tiles should be included...

In my case it was an error on his behalf, but one phone call later I got the corrected version in the mail within a week...

Cheers,

Manny.
 
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Reply: 1.2
From: Geoff Whitfield


Rixter,

Thanks.

I did want a second opinion before I went to him. If he told me it was not allowable, I would have no comeback to ask him again if I found later he was wrong.
 
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Reply: 2
From: Marina .


I queried my Floor boards, and I was told that they come under Building writeoff 2.5%.

Maybe tiles come under the same category.?
Come to think of it I cannot see Tiles anywhere either on my new depreciation schedule.

I recall the surveyor saying if you want a larger deduction, then put in carpets.
The tax office changed the ruling to the above only last year as floorboards tend to last a lifetime, so maybe its the same as tiles.

I am not sure about the painting. I will call my surveyor and find out where they put this deduction.

Overall I am very happy with my schedule as they gave very generous figures for all the items. Much much more then what it cost to build my house.

Marina.
 
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Reply: 2.1
From: Marina .


I just spoke to the surveyor, and Painting comes under residual Capital, which is 2.5% deduction.

Marina.
 
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Reply: 2.1.1
From: Geoff Whitfield


Thanks Marina,

Armed with this, I had enough confidence to ask the QS- an adjusted report with improvements for depreciation of plant will be sent out.

Much appreciate!
 
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