Renting furnished and tax query

[WASP]

If renting a property furnished, do you need a new depreciation schedule or do you just give a list of furniture/furnishing assets to your accountant?

I'm thinking the latter as it's not like you get a new depreciation schedule done if you say add a patio, or do a small renovation, but I may be wrong ?

How about if some assets are not new, do you just use approximate values ?

 

[Terry_w]

If renting a property furnished, do you need a new depreciation schedule or do you just give a list of furniture/furnishing assets to your accountant?

I'm thinking the latter as it's not like you get a new depreciation schedule done if you say add a patio, or do a small renovation, but I may be wrong ?

How about if some assets are not new, do you just use approximate values ?

Your accountant would not know the value unless you told him the purchase costs, date of purchase etc.

 

[BMT Tax Depreciation]

If renting a property furnished, do you need a new depreciation schedule or do you just give a list of furniture/furnishing assets to your accountant?

I'm thinking the latter as it's not like you get a new depreciation schedule done if you say add a patio, or do a small renovation, but I may be wrong ?

How about if some assets are not new, do you just use approximate values ?

Your accountant will be able to depreciate it if you know the values of the furniture. Freestanding furniture has a lifespan of 13.33r years, so you can calculate depreciation from that.

I can't answer your question about approximate values but a lot of the time we are only given an overall value that can be apportioned as necessary. We need some guidance on installation dates too. Given that different furnishings are often installed at different times, it gets understandably messy. If required, a QS (particularly if they're an AVAA member) can assign values to furnishings, though for us this incurs a small additional fee and is usually done at the time of inspection.

 

[Paul@PFI]

As an accountant I cant determine "value" of furniture, fittings etc. A QS report is a good strat point. Thereafter I can add to that schedule as future items are acquired (cost) and older items scrapped.