Deprication schedule-Pre 1985 IP

[MelbInvester]

Hi All,

I Just bought a house and this was build in 1975. when i look the valuation and assessment summary - Land value:xxx,xxx , Improvements (added Value): 190,000

also check with BMT Tax Depreciation Calculator


Estimate of Depreciation Claimable Standard House
Approx. Construction Cost as of 01 July 1985 $115,592
Maximum
Year Plant & Equipment Division 43 Total
1 $2,400 $0 $2,400
2 $2,900 $0 $2,900
..
5 $1,100 $0 $1,100
Total $10,000 $0 $10,000


Is it worth to spend $600 to get the report or claim base on these figure?

MI

 

[S.T]

Has it had any renovations done? or is it 1975 original?

 

[Paul@PFI]

Hi All,

I Just bought a house and this was build in 1975. when i look the valuation and assessment summary - Land value:xxx,xxx , Improvements (added Value): 190,000

also check with BMT Tax Depreciation Calculator


Estimate of Depreciation Claimable Standard House
Approx. Construction Cost as of 01 July 1985 $115,592
Maximum
Year Plant & Equipment Division 43 Total
1 $2,400 $0 $2,400
2 $2,900 $0 $2,900
..
5 $1,100 $0 $1,100
Total $10,000 $0 $10,000


Is it worth to spend $600 to get the report or claim base on these figure?

MI

MI - The BMT calculator has NO validity at all. You need a report. If ATO find you using guestimates they will smack you with penalties for recklessness, interest AND deny the deductions. I would call BMT and discuss directly with them and they will ask all the rights questions to determine its value for deductions. They will ask about improvements and repairs and strata improvements. They don't charge you for their expert opinions. Just the report. They don't want to waste your $$ either and offer a fee that guarantees a result. If no result its a free report (or discounted).

 

[danwatto]

Is it worth to spend $600 to get the report or claim base on these figure?

MI

Alot of QS will guarantee that you will be able to get enough deductions to cover more than the fee etc.

Ask them.

If the deductions cover the fee + you can deduct the fee on tax as well, then why not.

I am getting reports for old 1970s houses.

 

[Paul@PFI]

Dan's experience is common. I regularly encounter clients who also resist thinking they will probably demo and rebuild in a year of so anyway why bother ??

They then learn that all the residual value in the property can be written off and a large deduction for scrapping claimed in SOME instances. (Personal tax advice is a must as it has all sorts of impacts)

 

[depreciator]

Alot of QS will guarantee that you will be able to get enough deductions to cover more than the fee etc.

Yep. We were the first to have a guarantee around 10 years ago. Must have been a good idea because everybody has one now.
But nobody wants to waste time doing a job that makes no sense.
Call someone. If you have photos you can send them so they can give you a ballpark, that's ideal.

 

[Michael_X]

I did a bunch with Depreciator this year, all pre 1985 - very happy with the results.

@ MelbInvester - recommend getting them done, you will be surprised with the deductions.

 

[MelbInvester]

Yep. We were the first to have a guarantee around 10 years ago. Must have been a good idea because everybody has one now.
But nobody wants to waste time doing a job that makes no sense.
Call someone. If you have photos you can send them so they can give you a ballpark, that's ideal.

Hi Scott

Thanks, I'll send the Images for you to give us a recommendation or quote.

Thanks,

MI

 

[BMT Tax Depreciation]

Hi All,

I Just bought a house and this was build in 1975. when i look the valuation and assessment summary - Land value:xxx,xxx , Improvements (added Value): 190,000

also check with BMT Tax Depreciation Calculator


Estimate of Depreciation Claimable Standard House
Approx. Construction Cost as of 01 July 1985 $115,592
Maximum
Year Plant & Equipment Division 43 Total
1 $2,400 $0 $2,400
2 $2,900 $0 $2,900
..
5 $1,100 $0 $1,100
Total $10,000 $0 $10,000


Is it worth to spend $600 to get the report or claim base on these figure?

MI

Hi MelbInvester,

Those estimates are entirely reasonable for a property of that age and in most circumstances you'll come out ahead even in one year. Think about it this way: most taxpayers will get at least a third of their deductions back as a tax saving and you're looking at a deduction of the fee + the depreciation in that year alone. Would you and your accountant consider that a win?

However, as Paul said above, we always suggest that people follow the advice of their accountants too because there may be other implications at play in individual circumstances.

Even if photos are unavailable, we can usually provide a better estimate (the calculator is based on typical examples) when provided with the address and the purchase/asking price (optional).

Chris

 

[BMT Tax Depreciation]

Another quick thing: 1985 isn't really relevant any more, which is something that has escaped a lot of investors and accountants whom I've talked to.

It was important up until a couple of years ago, but that pertained to the period of time between July 1985 and September 1987 when Div 43 depreciated at 4% for 25 years. 25 years is up now, so now the only relevant date for original capital works is September 15/16 1987.

Chris

 

[MelbInvester]

Thanks Guys.