Tax depreciation schedule for old house

[serrz]

Hi

I have recently purchased a 1930's californian bungalow and have it as an IP. The property's condition is good and clean, however there has not been any major renovation work performed on the property for quite a long time (probably pre 1980's).

My intention is to do a significant renovation on the property in a year's time, rent it out for another year, then move in.

Is there any point in obtaining a tax depreciation schedule now? Are there "write off" amounts that I could claim when I renovate the property?

Thanks

 

[matto_]

If the schedule is for one year, nor sure, but would have thought no. Work with tour accountant to estimate, this won't be as accurate and comprehensive as depreciation schedule but for the year prior to Reno should suffice.

Once you have done the Reno, schedule would be great.

 

[depreciator]

Are there "write off" amounts that I could claim when I renovate the property?

Depends on what is there and what you toss out.

 

[Shahin_Afarin]

Short answer - absolutely! Once you do complete the renovation ensure that you do the Depreciation Schedule. I personally use Deppro but there are many out there. They charge around $400 and you should get back at least double that in the first year (depending on when in the financial year you have rented and renovated, etc).

 

[wylie]

It is a shame you didn't move straight in as a PPOR. Having rented it from the start you will pay capital gains tax on the gains made by doing your big renovation.

 

[serrz]

It is a shame you didn't move straight in as a PPOR. Having rented it from the start you will pay capital gains tax on the gains made by doing your big renovation.

My circumstances are quite flexible - I thought this would give me the best tax outcome as the interest holding costs during renovation would be deductible.

Any better suggestions?