Furnishings Depreciation

From: Andrew S


If I were to purchase a property that included some whitegoods as it had previously been rented as furnished, can I claim depreciation on these furnishings?

Also (and theres a catch), can I choose at some stage to store these whitegoods due to a tenant not requiring them, and still claim the depreciation?

What if I choose not to rent the property as furnished from the outset, instead choosing to put the whitegoods into storage. Can I still claim the depreciation on these whitegoods?

Regards
Andrew
 
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Reply: 1
From: John P


Technically you should not be able to claim the depreciation on these furnishings/appliances if they are kept in storage because they are not being used for IP Purposes. This is just my opinion not that of a qualified accountant


John
 
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Reply: 1.1
From: Jenny F


Andrew, there are some earlier posts on this forum about your first question, but in short, yes, you can claim depreciation if you rent the property furnished even if the furnishings came with the property sale. Suggest though you get a quantity survey done to properly get a value for the individual furniture items so you can depreciate them at the right rates & maximise your claim legally.

As for your other questions, they are ones I too had wondered about. So can't help you there, sorry.

Regards
JMF
 
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Reply: 1.1.1
From: Dale Gatherum-Goss


Hi

Depreciation is meant to reflect the drop in value of an asset over time and so it is with this thought in mind that I would claim the depreciation of the whitegoods regardless of whether they are being used by the tenant, or in fact, stored ready for the next tenant.

After all, a fridge only has a finite life regardless of how much beer you put in it!

And, of course, the costs of storage are also tax deductible.

I hope that this helps.

Dale
 
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A

Anonymous

Guest
Reply: 1.2
From: Anonymous


John, (and all those who reply in the same fashion)

I'm sorry to sound so harsh here but why did you even bother to answer the post if you only offered your opinion without fact? Granted every one is entitled to an opinion, but please limit it to areas that do not require the law.

Dale is a qualified accountant who regularly helps us out with tax problems. It would have been better left to him. If not today, he would have picked it up tomorrow.

As Les says...eschew obfuscation
 
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Reply: 1.2.1
From: John P


Hello Anonymous, and thanks for your contribution. May I just say that:
(A) I DID make it clear that it was an unqualified statement. If I was wrong, I apologise. There was no intent to mislead.

(B)I would like to know why you have a problem putting your name to your post. If I'm wrong (which has not actually been established yet) why do feel this urge to creep around anonymously???????

John
 
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Reply: 1.2.1.1
From: Duncan M


John,

Thanks for your contribution.. At the end of the day, I'm yet to find an accountant (and Dale might be the exception!) who has a detailed, accurate and reliable understanding of taxation issues surrounding property.. If we left all tax questions to accountants on this site, most would be unanswered.. certainly all the replies I give should merely serve to lead people to ask the right questions. Lay opinions of tax law are in my opinion most welcome and often very useful..

Duncan.
 
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Sim

Administrator
Reply: 1.2.1.1.1
From: Sim' Hampel


On 11/8/01 5:49:00 PM, Duncan M wrote:
>
>Lay opinions of tax law are in my
>opinion most welcome and often
>very useful..

Especially from one as learned as you eh Dunc ? ;-)

 
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Reply: 1.2.1.1.1.1
From: Andrew S


Many thanks for your replies. I appreciate all replies, however I do take special notice of replies that seem to come from someone in the know.

Thanks Dale, and all.

Regards
Andrew
 
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