Get a Depreciation Report? just for 2 years ?

Do you think it is worthwhile getting a depreciation report for an ip you only plan to rent out for 2 years max? Will I make any money out of it and what happens if/when I move back into the property (turning it back into my PPOR) for a few years then turn it into an ip again later on. Wont I lose a lot of the depreciation benefit?

:confused:
 
Do you think it is worthwhile getting a depreciation report for an ip you only plan to rent out for 2 years max? Will I make any money out of it and what happens if/when I move back into the property (turning it back into my PPOR) for a few years then turn it into an ip again later on. Wont I lose a lot of the depreciation benefit?

:confused:

do it ...........
 
Email scott at www.depreciator.com.au (from this forum) with details.
He will advise you as to whether it is worth it.

I've always got more than my money back in the first year.

You are crazy if you don't get it because when you sell they add depreciation to your sell price whether you've claimed it or not.

Friend of mine just sold a unit she's had for several years. She sold for similar price she paid for it but because the depreciation was added she had to pay CGT.
 
Email scott at www.depreciator.com.au (from this forum) with details.
He will advise you as to whether it is worth it.

I've always got more than my money back in the first year.

You are crazy if you don't get it because when you sell they add depreciation to your sell price whether you've claimed it or not.

Friend of mine just sold a unit she's had for several years. She sold for similar price she paid for it but because the depreciation was added she had to pay CGT.

Can;t understand how that works.....


But I was going to suggest calling Depreciator and explain your situation and they will advise if they think it's worthwhile, which normally you'd think it would be....
 
Do you think it is worthwhile getting a depreciation report for an ip you only plan to rent out for 2 years max? Will I make any money out of it and what happens if/when I move back into the property (turning it back into my PPOR) for a few years then turn it into an ip again later on. Wont I lose a lot of the depreciation benefit?

:confused:

I've found that they pay for themselves well and truly in the first year. Look at it this way - if you're going to move back in after 2 years, it will likely have some wear and tear. The depreciation you've claimed, and received a tax refund for, can go toward paying for the works - after all, that's EXACTLY what depreciation is!
 
I've found that they pay for themselves well and truly in the first year. Look at it this way - if you're going to move back in after 2 years, it will likely have some wear and tear. The depreciation you've claimed, and received a tax refund for, can go toward paying for the works - after all, that's EXACTLY what depreciation is!

I believe Depreciator suggest that they will tell you if they feel it's not going to be worth it in your first year, ie if you will pay more for the report than you can claim on your tax return that year.
 
I believe Depreciator suggest that they will tell you if they feel it's not going to be worth it in your first year, ie if you will pay more for the report than you can claim on your tax return that year.

There are a few QS companies that "guarantee" that the cost of the report will be covered in the first year. I guess the guarantee might just be that they don't bother doing the report in the first place. :rolleyes:
 
Yep, most companies have a guarantee these days. We rolled ours out first, but that doesn't mean much.

I think we've only had to honour the guarantee a couple of times - and that's because the client told us a fib about the build date and there wasn't much depreciation in the Assets in the properties. Most decent companies that do depreciation schedules will tell you before they do the job if it's worth doing or not. When people happen to have photos and email them to us, we can tell them the expected approximate return in the first year.

How old should a house be to benefit from depreciation if it is 20 to 30 years old is it worth it.

Newer houses have more depreciation. Anything built pre 85 becomes questionable - depends on the quality of the Assets (fixtures and fittings)

You are crazy if you don't get it because when you sell they add depreciation to your sell price whether you've claimed it or not.

Friend of mine just sold a unit she's had for several years. She sold for similar price she paid for it but because the depreciation was added she had to pay CGT.

This odd rule was rescinded some years ago. Might be worth your friend having a chat to her accountant and getting the CGT recalculated.

Do you think it is worthwhile getting a depreciation report for an ip you only plan to rent out for 2 years max? Will I make any money out of it and what happens if/when I move back into the property (turning it back into my PPOR) for a few years then turn it into an ip again later on. Wont I lose a lot of the depreciation benefit?

Not an unusual scenario, Alex. You'll claim depreciation while you rent the place out, then your accountant will suspend it while you live there (as your other deductions will be suspended), and then when you move out again depreciation can again be claimed. If you are definitely only going to rent the place out for two years initially, your accountant may elect to not use the Low Value Pool.

Scott
 
This odd rule was rescinded some years ago. Might be worth your friend having a chat to her accountant and getting the CGT recalculated.
My accountant last year told me that you had to claim depreciation. She was a couple of months off graduating. It gets confusing!
 
That was the case, but has not been for a few years.

And it only applied to depreciation claimed on building, not assets (fixtures and fittings)
 
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If you have been renting out a six year old townhouse for 4 years, can you backcharge decpreciation (if you have never claimed it on this townhouse before)
 
Yep, most companies have a guarantee these days. We rolled ours out first, but that doesn't mean much.

I think we've only had to honour the guarantee a couple of times - and that's because the client told us a fib about the build date and there wasn't much depreciation in the Assets in the properties. Most decent companies that do depreciation schedules will tell you before they do the job if it's worth doing or not. When people happen to have photos and email them to us, we can tell them the expected approximate return in the first year.

Newer houses have more depreciation. Anything built pre 85 becomes questionable - depends on the quality of the Assets (fixtures and fittings)

Scott

Scott is right to say "questionable". Very old properties, often have had significant and costly renovations done and yes, you can claim all that.

I know this as I have inspected (for Scott in Country VIC) many homes and even offices, where the renovation well exceeds the initial build cost.

Example: 1880's, Grand Home, renovated $120k to make it liveable, and then another $250k to covert to Doctors Offices. Owner thought the $120k was not counted.

I mention this as I heard a so Called Property Expert on radio once tell a caller they didn't need one for a $1M terrace in Richmond, too old. Any home costing $1M in Inner Melb Richmond has very likely had an extensive and expensive renovation. $250k would be easily spent.

This is often missed. On the average Project Home of the 1980's sure. But anything really old often costs more to renovate that knock over and start again.

FYI

Peter 14.7
 
hi sorry to hijack the thread but i've got a similar question.

got a 2 bed unit, in a 70/80s red brick walk up flat, renovated internally a few years ago.

it was a PPOR now a rental. thinking of selling it in about 6-12 months time.

would it be worthwhile to get a depreciation report?
got a quote for $575 (after asking for discount due to repeat customer)
 
Depends on:

1. the extent of the reno.

2. When the reno was done.

3. How long you have owned the place for.

4. How long you will be renting it out for.
 
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