From: Mike .
Hi All,
I don't often ask advice so I'm hoping you'll put your collective genius towards my cause.
Since I'm relocating to London shortly for higher wages and renting my home till I get back (6-10y), I had a discussion with a Quantity Surveyor today with a view to getting a depreciation schedule. But the cost is going to be prohibitive, in the order of $1500 to $2000. To determine whether this is reasonable let me give some background:
I don't qualify for capital allowance on the building (complex of strata units and townhouses) since it was built before 1985. However, since I bought the unit in Aug '97 I have spent about $30,000 in capital improvements and fixtures. Therein lies the problem of the depreciation schedule or rather schedules. I'm talking MULTIPLE schedules. Since the improvements were staggered over 4 years, the surveyor has advised me that the ATO would require separate dep. schedules since each item starts its dep. life when it is installed. At over $1000 for the building report (strata has 31 units and townhouses) and $150 per item, eg kitchen, bathroom, vinyl flooring, tiled laundry, built-in robes, doubleglaze windows, skylights, insulation, plus fixtures such as blinds and ceiling fans, possibly some furniture... need I go on?
Questions:
1. Is this too much to pay?
2. Can an accountant provide me with a cheaper solution?
3. Should I forget about the whole thing and add everything to the cost base? Definitely not, since I don't pay CGT on my residence anyway. Since I'll be paying taxes on the rental income I'd like to clawback some through property related tax deductions.
Any advice welcome.
Regards, Mike
Hi All,
I don't often ask advice so I'm hoping you'll put your collective genius towards my cause.
Since I'm relocating to London shortly for higher wages and renting my home till I get back (6-10y), I had a discussion with a Quantity Surveyor today with a view to getting a depreciation schedule. But the cost is going to be prohibitive, in the order of $1500 to $2000. To determine whether this is reasonable let me give some background:
I don't qualify for capital allowance on the building (complex of strata units and townhouses) since it was built before 1985. However, since I bought the unit in Aug '97 I have spent about $30,000 in capital improvements and fixtures. Therein lies the problem of the depreciation schedule or rather schedules. I'm talking MULTIPLE schedules. Since the improvements were staggered over 4 years, the surveyor has advised me that the ATO would require separate dep. schedules since each item starts its dep. life when it is installed. At over $1000 for the building report (strata has 31 units and townhouses) and $150 per item, eg kitchen, bathroom, vinyl flooring, tiled laundry, built-in robes, doubleglaze windows, skylights, insulation, plus fixtures such as blinds and ceiling fans, possibly some furniture... need I go on?
Questions:
1. Is this too much to pay?
2. Can an accountant provide me with a cheaper solution?
3. Should I forget about the whole thing and add everything to the cost base? Definitely not, since I don't pay CGT on my residence anyway. Since I'll be paying taxes on the rental income I'd like to clawback some through property related tax deductions.
Any advice welcome.
Regards, Mike
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