Hey guys,
Stumbled upon this forum by accident and as a result have lost too much sleep over reading all the useful information posted on here, so thanks so much for your contributions!
Just hoping to clear a few things up with relation to my investment property:
I purchased a fully furnished studio in October of 2009 and was told by the RE agent that the vendor had recently re-carpeted and re-painted it (as a bargaining tool as to why I should pay more for it).
I only just discovered what a depreciation schedule is and that I can claim a significant amount of depreciation given that I have now begun renting the apartment out on a short-term basis (similar to a serviced apartment), but am unsure where to start. I have read that I can amend my 2009-2010 tax return as well, once I have a depreciation schedule to do so.
1.) Can/should I contact the real estate agent almost 2 years on and ask him to follow up the vendor requesting any information he can provide with regards to depreciation schedule / details about the building / details about his renovation cost and timing specifics etc?
2.) If I do the above, will I need to obtain a depreciation schedule regardless in order to maximise my deductions on my tax returns?
3.) This is the building it is located in:
12. BRIDGEPORT – 38 Bridge Street
Bridgeport, a 17-storey residential unit building. A conversion of the former Dalgety House (built 1966), completed in September 1998. An additional three storeys were added and the existing building converted to provide 4 x three bedroom, 23 x two bedroom, 103 x one bedroom and 27 x studio apartments, three retail/commercial suites and two levels of basement for 22 cars.
Can/should I claim a 4% depreciation level per year due to the fact that I am renting it as a serviced apartment? Or just 2.5%?
4.) If, for example, I can claim 4% over 25 years, then does this mean that over half of the allowable depreciation will have already been claimed by previous owners, given that construction completed in 98?
Any help on these issues would be greatly appreciated as I am completely new to this. I am thinking my best course of action would be to order a depreciation schedule now, amend my 2009-2010 tax return, submit my 2010-2011 tax return with the schedule, then look at the possibility of refurbishing the apartment after this (so any remaining unused depreciation can be claimed in the current financial year as it will be being replaced).
Stumbled upon this forum by accident and as a result have lost too much sleep over reading all the useful information posted on here, so thanks so much for your contributions!
Just hoping to clear a few things up with relation to my investment property:
I purchased a fully furnished studio in October of 2009 and was told by the RE agent that the vendor had recently re-carpeted and re-painted it (as a bargaining tool as to why I should pay more for it).
I only just discovered what a depreciation schedule is and that I can claim a significant amount of depreciation given that I have now begun renting the apartment out on a short-term basis (similar to a serviced apartment), but am unsure where to start. I have read that I can amend my 2009-2010 tax return as well, once I have a depreciation schedule to do so.
1.) Can/should I contact the real estate agent almost 2 years on and ask him to follow up the vendor requesting any information he can provide with regards to depreciation schedule / details about the building / details about his renovation cost and timing specifics etc?
2.) If I do the above, will I need to obtain a depreciation schedule regardless in order to maximise my deductions on my tax returns?
3.) This is the building it is located in:
12. BRIDGEPORT – 38 Bridge Street
Bridgeport, a 17-storey residential unit building. A conversion of the former Dalgety House (built 1966), completed in September 1998. An additional three storeys were added and the existing building converted to provide 4 x three bedroom, 23 x two bedroom, 103 x one bedroom and 27 x studio apartments, three retail/commercial suites and two levels of basement for 22 cars.
Can/should I claim a 4% depreciation level per year due to the fact that I am renting it as a serviced apartment? Or just 2.5%?
4.) If, for example, I can claim 4% over 25 years, then does this mean that over half of the allowable depreciation will have already been claimed by previous owners, given that construction completed in 98?
Any help on these issues would be greatly appreciated as I am completely new to this. I am thinking my best course of action would be to order a depreciation schedule now, amend my 2009-2010 tax return, submit my 2010-2011 tax return with the schedule, then look at the possibility of refurbishing the apartment after this (so any remaining unused depreciation can be claimed in the current financial year as it will be being replaced).
