How can I claim depreciation for half year?

Hello everyone,
It is TAX time and I have two questions.
(1) IP -1 settlement on 7th Dec 2009 and IP-2 settlement on 31st Dec 2009. Should I claim Landlord insurance premium for 206 and 181 days? Or we can claim full premium?
(2) We have got Depreciation schedule for both the properties. Claimable depreciation for year 2009-10 are $8500 and $6530. Total amount is $15030 I think I can not claim $15030 but it should be 8500 X 206/365 =$4797.26 and 6530 X 181/365 =$ 3238.16
Total Claimable amount is only $8035.42Please advice.
Final tax return will be done by my Accountant but I also need to know how do all the figures come.
Thanks.
 
Even tho you bought the IP's basically half way through the FY, you can claim the whole amount. The QS reports are usually already apportioned in relation to days owned in the FY.

I hope this helps.
 
If your depreciation schedule allows for those amounts in the 2009-10 period, then claim that. It should state exactly what you can claim for many years ahead, thats the whole point.

Claim the whole Landlord insurance premium as you have paid it in the 09/10 period.
 
Our property was rented for7 months of the last financial year, we haven't got a schedule done yet. Is it recommended to get on asap before we go to the accountant or can it be claimed at next financial year?
 
Our property was rented for7 months of the last financial year, we haven't got a schedule done yet. Is it recommended to get on asap before we go to the accountant or can it be claimed at next financial year?

Best to get one before you go...that way you can get whats entitled to you now, instead of paying your accountant for adjusting last years return next year.
 
Even tho you bought the IP's basically half way through the FY, you can claim the whole amount. The QS reports are usually already apportioned in relation to days owned in the FY.

Check to see what the report says as some QS's don't apportion it. Some say that the first year is based on a full year and leave it to the client to apportion it - not what they should be doing but nothing you can do about it. Your report should tell you what they've done though.

If for some reason the QS didn't apportion it, be careful when you apportion it yourself. You were right with your formula of number of days in a year (eg 206/365) BUT that doesn't apply to items in the diminishing value method "low value pool" (which are items with an individual value of <$1000). These items are not apportioned and you can claim them as if you owned them the full year (even if you owned it for a week of that year). If there is no "low value pool" in your report, get yourself another QS as you're missing out bigtime! :eek:

Hopefully the QS did his job correctly though and you won't have to worry about doing it yourself. :)
 
Syba

Be a good QS now and provide your name?

It's easy to sit there and bag other QS firms behind an anonomous alias.

Cheers

Neil,

I'm not bagging other QS firms, but as you would be aware, there are mainly really good QS firms around, but like all industries there are some 'not so good' firms out there. A good QS should apportion the depreciation schedule (and make it clear that they have done so) so that there is no confusion and is simple for the client to use in their tax return (particularly if they don't go to an accountant who usually would better understand the depreciation schedules)

I didn't provide a name as I wasn't trying for self promotion, only putting my two cents in to help out. But if you must know my name is Nathan Towill and I'm a director of Wilde and Woollard in our Sydney office (http://www.wildeandwoollard.com).
 
Thanks Nathan

All good. Forums are great but often turn into a bit of a circus when people don't know who they are dealing with.

I haven't heard the W & W name for a while. I had something to do with them years ago from the Brisbane office.

Thanks for your honesty.

I am pretty lucky int he self promotion stakes as I see 99% posting on these forums are from the "big smokes" so I can't help them out too much being here in the boonies!

Cheers
 
No problems. I'm actually heading up your way for a holiday in a couple of weeks - going to Noosa. Still 400 odd kms from you but still your 'up around there'. Hope you have warm sunny weather for me :)
 
Hi,
I am answering my own question, please correct me if I am still wrong. I did some research and asked questions to online account gurus and found that...........(1) We can claim full premium If paid annually in advance, If paid monthly , the total of monthly payments made in the tax year.
(2) We can claim depreciation only for the days we own. I mean 208 days out of 365 days.
 
Hi,
I am answering my own question, please correct me if I am still wrong. I did some research and asked questions to online account gurus and found that...........(1) We can claim full premium If paid annually in advance, If paid monthly , the total of monthly payments made in the tax year.

That is correct.

(2) We can claim depreciation only for the days we own. I mean 208 days out of 365 days.

Again correct, except depreciation on items in a low value pool are claimed as if you owned it the entire year (as stated earlier), and groups of "like items" costing <$300 at depreciated at 100% in the first year.
 
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