New Granny Flat Depriciation / Tax things

Hi All,

Thanks for the help earlier. I have a separate 130k construction loan setup for the granny flat. GF is almost finished n my broker will keep a separate loan account for GF, which he has setup interest only... also will have a separate personal account, where only GF rent would go...

so hopefully for my accountant this setup would be easy to work out income/cost EOFY.

now I do need a deprecation schedule for the newly build GF right. I am mostly going with depreciator from the forum. they all say that being a totally new build , they can make one up using...building contract and approvals..

I live in the front house and its a Prop for now. I know capital gains will be affected in future, but hopefully don't plan to sell this home..

anything else I should do or have missed any steps for right setup.

regards,

somerhut
 
I'm not sure whether 'make one up' is the right way to put it, but if you have a building contract with a total cost and sufficient information on the Assets, it's not difficult. Some accountants could also take care of it.
I can't comment on the loan arrangements.
 
Hi All,

Thanks for the help earlier. I have a separate 130k construction loan setup for the granny flat. GF is almost finished n my broker will keep a separate loan account for GF, which he has setup interest only... also will have a separate personal account, where only GF rent would go...

so hopefully for my accountant this setup would be easy to work out income/cost EOFY.

now I do need a deprecation schedule for the newly build GF right. I am mostly going with depreciator from the forum. they all say that being a totally new build , they can make one up using...building contract and approvals..

I live in the front house and its a Prop for now. I know capital gains will be affected in future, but hopefully don't plan to sell this home..

anything else I should do or have missed any steps for right setup.

regards,

somerhut

$130k is for construction? What about the land component of the GF?
 
I'm not sure whether 'make one up' is the right way to put it, but if you have a building contract with a total cost and sufficient information on the Assets, it's not difficult. Some accountants could also take care of it.
I can't comment on the loan arrangements.

hi depreciator,

thanks what I meant was that was sufficient information to produce one.
its my first time, is it not that a depreciation schedule can only be prepared by ATO approved surveyors can only make one.

thanks
 
$130k is for construction? What about the land component of the GF?

well what can i do for the land component..i mean cannot be claimed anyway in tax right now correct as it was purchased 2 years ago as prop.

what i did was...purchase price. was 430k....just before granny flat built, got a proper bank valuation...which came back at 500k....

since then again in blacktown prices have gone crazy in last 6-8 months...

i guess now whatever valuation i get done....i plan to rent granny flat from day one itself on lease/paper.

regards,

somerhut
 
well what can i do for the land component..i mean cannot be claimed anyway in tax right now correct as it was purchased 2 years ago as prop.

The granny flat is built on the land purchase. Part of the loan relates to the land under the granny flat. This land is income producing....
 
is it not that a depreciation schedule can only be prepared by ATO approved surveyors can only make one.

This question is sort of along the lines of that in a different and particularly loopy forum thread that is running (off the rails) now.

The rates and rules for depreciation are set in stone and pretty straightforward.

If you, for example, built a house yourself and kept a record of every cent you spent and gave that to your accountant, he would have enough to work with when it came to sorting out depreciation. (Indeed, if the actual costs are known, they must be used.)

But if you bought an existing house and had no idea what it cost to build it, that is where you need to get help from an ;appropriately qualified professional'. Somebody would need to work out what it cost to build that house. Quantity Surveyors can do that, but so can a few other people - estimators, clerk of works, some architects.

Scott
 
Just to copy and paste something I wrote in another thread a moment ago on a similar topic:

It's worth keeping in mind that, even with all available costs, your accountant will have to work out which are depreciable, which are Div 43 and Div 40 (not always obvious), the effective lives of each Div 40 item, work out both prime cost and diminishing value methods (or at least decide in advance which will suit you) and, if you're using the latter method, do some extra maths for the low value pool. It's not a small task and it's a rare accountant who will do this for free. There could also be complications should you change accountants.
 
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