Deprediation of building cost

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From: Derek Hodgkins


I am in the process of purchasing my first investment property. I will be the 2nd owner of the property, which is a unit in a block built in 1996.
If the first owner of the property has not been depreciating the building cost of the unit since 1996, can I start to depreciate the cost when I have completed the purchase?

Thanks,
 
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Reply: 1
From: Dale Gatherum-Goss


Hi Derek

No, you cannot. You will need to organise a Quantity Surveyors report and they will identify what costs you can depreciate for tax purposes.

Congrats on the IP. That's great!

Dale
 
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Reply: 1.1
From: Mark Pardi


It would be nice to do !!!

However our friends at the ATO might ask you to join them for a coffee and a brief chat.

However there will be some depreciation in there somewhere for you.

Contact a good quantity surveyor

There are threads in here about "quantity" surveyors.

I have the names of some very reputable companies. So if you e-mail me I will supply them to you

Mark Pardi

Property Buyers Network NSW
 
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Reply: 1.2
From: Derek Hodgkins


Thanks for the reply.

I have received a depreciation schedule from the vendor that mentions carpets/blinds/flyscreens and other fittings and also share of common depreciable s (such as the car park).

However, it makes no mention of depreciating the building cost.

Would such a survey as you mention allow me to start depreciating the building cost with using a value that the surveyor estimates?

Thanks for your help.
 
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Reply: 1.2.1
From: Dale Gatherum-Goss


Hi

Yes, it will.

Does the vendors statement refer to "Capital Works" or "Division 10D claims" or, for that matter, any large amounts depreciated at 2.5%pa? If so, that is the building.

Dale
 
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Reply: 1.2.1.1
From: Mark Pardi


An accurate and professional QS will provide you with all the information regarding all potential deductions


Mark Pardi

Property Buyers Network
 
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