From: David H
This is a combination of two topics I have seen mentioned a couple of times in this forum - quantity surveys and the depreciability (I think I just invented that word) of certain fittings, including kitchens.
There was a thread earlier this year on the depreciation of kitchens and whether or not they were fittings, and hence deductible over a shorter period, or part of the building. The general conclusion was the ATO took it to be part of the building.
I have two IPs and both QSs have furniture (and some other stuff) shown is part of plant and fittings. My accountant took the ATO view and changed it. So my depreciation schedule doesn't reflect my QS. The QS reports were prepared by two different companies, but are very similar.
I have also recently seen a statement in one of the more reputable property investment group newsletters that "Taxation depreciation schedules for property must now, to satisfy the terms of a recent ATO directive, be supplied by a QS. Schedules prepared by an accountant are no longer acceptable."
So, I have a bunch of questions from that:
1) Do others have their QS reports varied by their accountant when preparing the depreciation schedule
2) Do others simply use their QS report verbatim, and hence have their kitchens etc depreciated at the higher rate?
3) Do others who use their QS report verbatim get them queried by the tax office?
4) Can anyone point me to the new tax directive?
5) Given the new tax directive, can accountants now adjust QS reports?
Thanks in advance,
DavidH
This is a combination of two topics I have seen mentioned a couple of times in this forum - quantity surveys and the depreciability (I think I just invented that word) of certain fittings, including kitchens.
There was a thread earlier this year on the depreciation of kitchens and whether or not they were fittings, and hence deductible over a shorter period, or part of the building. The general conclusion was the ATO took it to be part of the building.
I have two IPs and both QSs have furniture (and some other stuff) shown is part of plant and fittings. My accountant took the ATO view and changed it. So my depreciation schedule doesn't reflect my QS. The QS reports were prepared by two different companies, but are very similar.
I have also recently seen a statement in one of the more reputable property investment group newsletters that "Taxation depreciation schedules for property must now, to satisfy the terms of a recent ATO directive, be supplied by a QS. Schedules prepared by an accountant are no longer acceptable."
So, I have a bunch of questions from that:
1) Do others have their QS reports varied by their accountant when preparing the depreciation schedule
2) Do others simply use their QS report verbatim, and hence have their kitchens etc depreciated at the higher rate?
3) Do others who use their QS report verbatim get them queried by the tax office?
4) Can anyone point me to the new tax directive?
5) Given the new tax directive, can accountants now adjust QS reports?
Thanks in advance,
DavidH
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