Depreciation

[Boof]

Hi Guys,

I have a couple of IP's that I find out now that I can get Depreciated (thanks to not very good tax advise over the years!!)

I wonder how far back dated I should have the schedules done or is it better to go from now! the properties are over 20 years old, Any ideas would be much appreciated!!

Boof

 

[WashingtonBrown]

Hi Boof

Any Quantity surveyors report will start the depreciation process from when you purchased the property - or more specifically settled the property.

At what point you back date and/or amend previous returns will be between you and your accountant.

If you dont go back to the beginning of settlement - you may, for instance, use the prime cost method of depreciation which slows down the depreciation process - well actually it doesnt accelerate it.

I hope i am not confusing you.

Regards

Tyron

 

[Rixter]

My understanding is you can go back 4 years and amend tax returns.

I would run this past your tax professional to clarify this for your self.

Can any tax professionals here clarify this?

 

[BKR]

I heard the same as you Rixter at the Syd expo, the depreciation speaker said you can go back up to 4 yrs to amend taxes.

Chris

 

[Bushy]

I understand 4yrs at the moment but it will change from October 08 when you will only be able to go back 2yrs.

We were in a similar situation to you Boof, so when we got the schedules done we advised QS that most of the reno's were done in the last few years without receipts, and are now in the proccess of amending last 3yrs returns.
Bushy

 

[Peter 14.7]

Yep, can go back.

I had one done by Depreciator (another supplier of schedules and member here) and went back the five years being past four and the year in quesiton. Got back $15k! on only a small villa.

regards

Peter 14.7

 

[Boof]

Thanks for all your ideas, I was thinking that it was all going to be to hard to amend Tax returns but it certainly seems it might be worth it! I think I will go back 4 and then this year! I am still abit miffed at our acccoutant for not bringing this up years ago but have now traded him in! It is just so good that Forums like this are around and it has really opened my eyes! I have a whole new drama that has erupted in the land of buying property that I will post shortly so watch out for "Monster House"

Boof

 

[depreciator]

The viability of amending past tax returns all gets down to the possible depreciation in the property. A good QS will be able to help you work out whether it's worth doing.
Scott