Deprieciable items



From: Jon Kennedy

I've just been talking to my accountant and found out that kitchen cupboards, bench tops etc... are not regarded as depreciable items by the Tax man. They are regarded as building and depreciate at 2.5%
Is this true
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Reply: 1
From: Rolf Latham

Hi John

Didn't you know that the modern kitchens last 40 years.

I suspect your accountant is right and Mr Carmody (commissioner for tax) might be wrong.


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Reply: 1.1
From: Jeanette .


I take it you were being sarcastic about kitchens lasting 40 years.

In a house that I am building, I have only paid for the most basic kitchen and I am going to buy separately a few freestanding kitchen dressers/microwave oven cupboard and depreciate these at the furniture rates (whatever they are, but I know they are higher than 2.5%).
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Reply: 1.1.1
From: The Wife

Jeanette is doing the right thing, 'built in' kitchens arent deprieciable,

Bunnings warehouse are the go,

Their kitchens come in parts, and can be moved or dismantled, they are depreciable....says i...the NON accountant, check please...( but im pretty darn sure im right)
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Reply: 1.1.2
From: Rolf Latham

Hi Jeanette

Of course, what average kitchen gives you 40 years of wear ? Bricks yes, orange and lime laminated benchtops def not.

Pretty nifty idea to do it that way. In Germany when you rent you bring your kitchen with you !!, the landlord generally does not provide, but then average rental periods are measured in years not 18 months.


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From: Kristine .


Up until the advent of the wall oven, everyone took their 'cooker' with them when they moved in England.

And their plastic washing-up bowl

and their wardrobes

and of course made sure they didn't leave their washing machine behind in the kitchen!

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Reply: 2
From: Grant A-Y

For a 25 yo property, do I need a QS to provide an accurate depreciation schedule on the fixtures, or can I "best guess" the values on the conservative side?

Grant AY
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Reply: 2.1
From: Dale Gatherum-Goss


The tax office can fight you if you do not have a QS report so I do recommend one to protect your claim.

Guessing is not worthwhile at all.

A QS will identify any changes to the property since 1985 and calculate the costs involved. This might include:

drive ways or other concrete areas

and, chattels such as carpets, HWS, stoves, heating and cooling.

I recommend one to all my clients.

I hope that this helps.

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Reply: 2.1.1
From: Grant A-Y

Thanks Dale, I will go ahead with a QS then.

Grant AY
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