Tax Depreciation Schedule - Help

[For Sale]

Hi,

This is the first year we have had an investment property and am very confused by conflicting information from different people.

I have been told by several people I MUST do a TDS because i will get more back in tax, can someone please clarify exactly what they do and is it benificial for me to do?

I will be using Valsamis & Associates and they reccomended i use www.depreciator.com.au

3 bedroom house
7 years old
new carpet, light, paint, fence, gardens

Please help as i need this sorted before end of financial year.

Thanks in advance

 

[Emily_Zac]

Hi,

This is the first year we have had an investment property and am very confused by conflicting information from different people.

I have been told by several people I MUST do a TDS because i will get more back in tax, can someone please clarify exactly what they do and is it benificial for me to do?

I will be using Valsamis & Associates and they reccomended i use www.depreciator.com.au

3 bedroom house
7 years old
new carpet, light, paint, fence, gardens

Please help as i need this sorted before end of financial year.

Thanks in advance

I am not claiming to understand the ins and outs, but I have them for each of my IPs and for instance I use BMT I paid $650 and for a new 4 bed house this years (sorry don't know the pre years off hand) $9500 ish of my taxable income and the figure drops every years over 10 year if you chose diminshing value + $650 is also deductable in the 1st year

So well worth it

Martin

 

[jaycee]

Hi ForSale,

Depreciation is an amount younare allowed to clai on your proeproty - don't miss out !

A company like Depreciator will go through your house & list all items that can be depreciated by law & work out how much they can be deprciated by each year and present this in a table for you to sue for each tax return for a number of years (25 ?)

You then claim the amount as an expense each tax return - brilliant

Things get old & cost money to replace, so this is what you are claiming...

 

[coastymike]

"present this in a table for you to sue for each tax return for a number of years (25 ?)"

Gee I must tell my clients to stop getting schedules done. Being sued for the next twenty five years sounds awful

 

[depreciator]

I have been told by several people I MUST do a TDS because i will get more back in tax

For Sale, you really don't have to do anything you don't want to do.

You don't have to claim your property manager's fees as a tax deduction if you don't want to.

You don't have to claim water rates and council rates as tax deductions if you don't want to.

And you don't have to claim depreciation as a tax deduction if you don't want to.

But when my accountant suggests I do something, I give it some consideration. And that's obviously what you are doing by coming here.

Without seeing it, and assuming you bought that house recently, I would imagine the depreciation in the first year would exceed $3,500. Year 2 would be similar. And that's a pretty decent tax deduction.

For your accountant to claim that deduction, it seems he wants you to get a Tax Depreciation Schedule. And there is a (tax deductible) cost to that.

You don't need to get the Schedule done before June 30. But if you want to claim depreciation against your income, you will need it done before you see your accountant.

We get about 60% of our work from accountants. They get in touch with us and ask us to contact their client and arrange a Tax Depreciation Schedule. So we call them. Several times. And often the client keeps fobbing us off, so we let it rest. Then they go to their accountant and their accountant says: 'Okay, so give me that Depreciation Schedule.' That's when we get a call from a client in July saying: 'Hey, you know that thing you've been calling me about? Can I have it tomorrow?' And there is absolutely no chance of that happening.

Scott

 

[jaycee]

"present this in a table for you to sue for each tax return for a number of years (25 ?)"

Gee I must tell my clients to stop getting schedules done. Being sued for the next twenty five years sounds awful

NOW I see the benefit of spell checking LOL

presents this in a table for you to use for each tax return for a number of years (25 ?)

 

[For Sale]

Thanks for your feedback so far

Emily Zack, I will have a look at BMT, thanks.

Is there a difference between companies that do this TDS or is just personal preference?

Is there a way I can find out a rough estimate on what I will get back in tax this year before June 30 as I need to budget some things etc and would be handy to know now.

Cheers for your help again guys.

 

[depreciator]

It's partly down to personal preference.

BMT are good guys and do things properly.

So do a few other companies.

There are plenty, though, who take short cuts that I'm not comfortable with, and a few smaller ones who get things wrong. But they're usually cheaper.

We have a pay per use calculator on our site that is much more accurate than the free ones around - but it takes more time to use.

Otherwise, if you have photos you can send me, I can get a QS to give an estimate of possible depreciation.

Scott

 

[For Sale]

Sorry, I should have elaborated.

I was talking about my TAX in general, not just for depreciation, I would like to know roughly NOW what i will get back from the ATO when I lodge my tax return. I know how much i earnt, rent, interest, rates etc.

 

[Emily_Zac]

Sorry, I should have elaborated.

I was talking about my TAX in general, not just for depreciation, I would like to know roughly NOW what i will get back from the ATO when I lodge my tax return. I know how much i earnt, rent, interest, rates etc.

I use the ITWV form on ato ( don;t submit tho ) and this gives me and idea of what my final taxable income will be and then i use a tax calc for the taxable amout and work out the diffrence.

If you are working don't forget you can enter a varition request online and get a reduction on you tax every time you get paid rather than wait

Martin

 

[JoyBoy]

Would it be worthwhile getting a depreciation schedule for a property that is approximately 30 years old that hasn't had a recent renovation? I can't imagine there being much to depreciate to justify the cost of getting a depreciating schedule for such an old property.

 

[LynnH]

JoyBoy

I got a QS report done for a Queenslander built in 1938 that was partly renovated about 13 years before we bought it - 'twas well worth the cost.

Cheers
LynnH

 

[BV]

Sorry, I should have elaborated.

I was talking about my TAX in general, not just for depreciation, I would like to know roughly NOW what i will get back from the ATO when I lodge my tax return. I know how much i earnt, rent, interest, rates etc.

Your accountant might be able to give you a rough estimate
by entering your data into his ATO program or you can try a spreadsheet like this one

http://www.invested.com.au/83/tax-0910-spreadsheet-36499/

 

[Emily_Zac]

Would it be worthwhile getting a depreciation schedule for a property that is approximately 30 years old that hasn't had a recent renovation? I can't imagine there being much to depreciate to justify the cost of getting a depreciating schedule for such an old property.

I think alot of the QS don;t charge if they are unable to get you more than there fee back

 

[jaycee]

Sorry, I should have elaborated.

I was talking about my TAX in general, not just for depreciation, I would like to know roughly NOW what i will get back from the ATO when I lodge my tax return. I know how much i earnt, rent, interest, rates etc.

You will also need to know oyour total income & tax paid... ato webiste as a tax calculator, subtract your deductions from your incmoe & enter the figure.. will tell you how much tax you have to pay.. subtract this from the amount you have paid = refund.

or pop your figures into etax 07/08 if you have it

 

[Belu]

hey guys,

read this post the other day and about a day later got an email from the accountant for an estimation tool for depreciation on their site.

might help those who are thinking about doing it:

http://www.houseofwealth.com.au/articles.php (last link)

Cheers,

Ben