QS Report

My IP is pretty basic.
I had sought advice from the group to see if getting a QS done before my renovations (about $3000) or after.

The IP is pretty basic-
Wall oven
cook top
TV aerial
lino in kitchen (I wish to replace)
carpet throughout (I wish to replace)
low cost curtains (replace with verticals)
fly screens on windows.

The feeling was get a QS done after the repairs and improvements. The QS firm I contacted (one that was spoken highly by some in the group) says:


"Dear Scott,

Thank you for your email.

The cost of a tax depreciation schedule for a residential property in
Currans Hill is a once off fee of $550 (inclusive of GST).

To maximise your tax entitlements it would be best to have a schedule
prepared before you renovate.

You would loose the depreciation in the old carpet if you were to replace it
prior to the schedule because regardless of it's age you are entitled to
depreciate plant and articles at market value and give them a new effective
life that commences from settlement date.


I dont quite understand what they mean. I dont wish to pay for a second QS report after renovations. Can anyone suggest the best course of action. I am in a negative cash flow so any depreciation amounts is important

Thanks Scott
 
Scott,

They want two fees and probably are prepared to earn it. Let's say you redo the light fittings curtains drapes and carpets.

They will value all the stuff you're going to scrap and you can write it off there and then.

Then they value you place again after the reno for the 'new' value.

I'd say it's worth it. Note that as I think your IP is new there are some issues with deductibility of renovations, but I don't feel competent to comment.

Maybe they'll give you a discount for having two rapidly successive valuations. Can't hurt to ask!

Cheers,

Bob
 
I replaced one of my old wooden fences with a new colourbond fence. I've also replaced one of my kitchens.
Will I be able to write off the cost of the old fence/kitchen using my accountant's guestimate of the value? I've only had QS reports done after renovations!
Any suggestions?
Cheers,
Crystal
 
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