Hi all,
Looked through a few threads but couldnt find the answer I need.
Situation: I do my own tax returns. I have a 2 story Townhouse IP 2 years old - QS depreciation report done when new (bought house on completion). Property has floating floorboards downstairs and carpet in staircase, upstairs foyer and all bedrooms.
Tenant damaged carpet upstairs in foyer by dropping an iron- carpet is discontinued, therefore whole carpet should to be replaced otherwise will look tacky - will cost a fair bit and tenant will not pay 100% to replace (dont expect them to).
Scenario 1: To save on costs I was thinking of getting floating floor boards (matching downstairs) to replace carpet in staircase and foyer and leave carpets in bedrooms.
Q1 - can i depreciate floating floorboards over its life span -if so, can i work out the depreciation using ATO methods or do I legally need to get a QS to do a report just on the new section of the floating floorboards.
Q2. Can i continue to depreciate the whole carpet (as I would have done if not damaged) for the remaining 8 years of life or do i NEED to "write off" section that was replaced and continue depreciating the remainder (or do i have a choice either way?). For my own simplicity i would rather continue depreciating the whole carpet over time as if the carpet was not damaged.
Q3. My QS report just states Carpet and the total cost. If i MUST "write off" the portion being replaced by floorboards (approx 1/4 of carpet in house) am i just able to 1/4 the total cost of carpet and "write off" its remaining life (8 years) while continuing to depreciate the remaining 3/4's over the next 8 tax years?
I obviously want to do my tax return correctly - any help is appreciated. Im sure other people have been in a similar situation.
By the way unfortunately i cant claim insurance because AAMI does not do accidental damage. I will be looking for new insurers that do for any future tenant accidents.
Looked through a few threads but couldnt find the answer I need.
Situation: I do my own tax returns. I have a 2 story Townhouse IP 2 years old - QS depreciation report done when new (bought house on completion). Property has floating floorboards downstairs and carpet in staircase, upstairs foyer and all bedrooms.
Tenant damaged carpet upstairs in foyer by dropping an iron- carpet is discontinued, therefore whole carpet should to be replaced otherwise will look tacky - will cost a fair bit and tenant will not pay 100% to replace (dont expect them to).
Scenario 1: To save on costs I was thinking of getting floating floor boards (matching downstairs) to replace carpet in staircase and foyer and leave carpets in bedrooms.
Q1 - can i depreciate floating floorboards over its life span -if so, can i work out the depreciation using ATO methods or do I legally need to get a QS to do a report just on the new section of the floating floorboards.
Q2. Can i continue to depreciate the whole carpet (as I would have done if not damaged) for the remaining 8 years of life or do i NEED to "write off" section that was replaced and continue depreciating the remainder (or do i have a choice either way?). For my own simplicity i would rather continue depreciating the whole carpet over time as if the carpet was not damaged.
Q3. My QS report just states Carpet and the total cost. If i MUST "write off" the portion being replaced by floorboards (approx 1/4 of carpet in house) am i just able to 1/4 the total cost of carpet and "write off" its remaining life (8 years) while continuing to depreciate the remaining 3/4's over the next 8 tax years?
I obviously want to do my tax return correctly - any help is appreciated. Im sure other people have been in a similar situation.
By the way unfortunately i cant claim insurance because AAMI does not do accidental damage. I will be looking for new insurers that do for any future tenant accidents.