I've just purchased a property for $290K which was built in 1987. Unfortunately this falls into the period where building allowance is 4% for 25 years rather than 2.5% for 40 years so I only have 2 years left on it. I'm trying to decide whether it's worth getting a depreciation schedule, I suspect yes with a small advantage. I have no idea how much buildings would have cost to construct back then and was just wondering if anyone can give me some idea so I can get an idea as to the deduction. It's a brick 3 bedroom 1 bathroom standard house.
To get depreciation schedule or not?
- Thread starter Leikela
- Start date
Leikela, don't underestimate the Quantity Surveyors and what they can do!
Debated about getting one for my last property. Built in 1950, still original bathroom, kitchen updated but at least 10yo. Not much depreciation right?
Wrong. $7k in the first year alone from things you'd never think about like the internal fittings, carport that had been built 20yrs ago, pergola on the other side just as old etc. It was a work of art!
So even without capital works, if in doubt, I'd get one.
Debated about getting one for my last property. Built in 1950, still original bathroom, kitchen updated but at least 10yo. Not much depreciation right?
Wrong. $7k in the first year alone from things you'd never think about like the internal fittings, carport that had been built 20yrs ago, pergola on the other side just as old etc. It was a work of art!
So even without capital works, if in doubt, I'd get one.
Thanks. I often see clients depreciation reports and agree, there can be lots to claim, but they are usually newer properties. Client's often don't have them for older properties but I guess they just don't know about it or don't want to spend the $600 to get one. Think I'll definately go ahead, there's no way I'd be out of pocket, and potentially some good benefit for me.
get a QS report for ANY property - regardless of age.
$400-700 well spent IMO.
$400-700 well spent IMO.
I've yet to see a depreciation report that didn't pay for itself at least twice over, regardless of the age of the property.
Even if it didn't pay for itself, what's it worth for the fact it steam lines your accounting process and presumably costing you less with your tax planning.
Even if it didn't pay for itself, what's it worth for the fact it steam lines your accounting process and presumably costing you less with your tax planning.
As I said before this is the first year that I have IP and I paid about $600 for my depreciation reports and just for one month that I have my IP , I can claim around $ 1800 on my tax return. My property is about 18 years old.
I think it's definately worth it.
To now answer my question in case anyone else is wondering whether to or not.... absolutely!!!
Got my report today, I had the property 6 weeks in 08/09 and I've got almost $2K of deductions for just that year, so already it's well and truly paid for itself... not to mention the thousands I get to claim over the next few years. The building allowance wasn't quite as high as I thought it might be (but I was only guessing as I had no idea how much a building would have cost to build in 1987), but the plant and equipment... never knew it was worth so much!
Got my report today, I had the property 6 weeks in 08/09 and I've got almost $2K of deductions for just that year, so already it's well and truly paid for itself... not to mention the thousands I get to claim over the next few years. The building allowance wasn't quite as high as I thought it might be (but I was only guessing as I had no idea how much a building would have cost to build in 1987), but the plant and equipment... never knew it was worth so much!
Well done! Like I said, they're always worthwhile.
