What can I depreciate against my PPoR as an IP?

[Samwise]

Hi all, without paying to see a QS....

Question 1:

I have a 1990 constructed 3bed, 1.5 bath standalone 2-story townhouse... trying to find a rough-as-guts realistic construction estmate to use in my depreciation calcs if i turn it into an IP?

106m2 living area, total strata'd area 221m3 (its one of five).

Any ideas please? The strata buildings are currently insured for $1.1m for the 5 townhouses.

Question 2:

When we bought it, we borrowed an extra $50K on the mortgage and rennovated the entire house - kitchen, bathroom, flooring, garage door etc etc. Its pretty flashy now!

What will a QS be able to put on a depreciation schedule?

Thanks for the help, Sam

 

[skater]

Sheesh! That is like asking how long is a piece of string. You really would need to speak to a QS.

 

[Project1080]

Agree with Skater. Get a QS.
For the cost, it's worth it. They'll identify things you wouldn't have thought of and they'll know all the costs. There's also less possibility of being questioned by the ATO if you use a QS. They're tax deductable too so it offsets the cost.

Project 1080

The project: 10 IPs in 80 mths.

 

[Samwise]

I'm doing this to decide if its worth using my PPoR as an IP, so i dont want to pay for anything at this stage. It may be the difference between CF+ and CF-

OK maybe i'll guess... but its the construction cost in 1990 that i'm guessing, right? i.e. not the replacement cost now?

 

[Project1080]

Correct.
Getting back to the QS. Assume the building cost was $50,000. Don't matter if built in 1987 or yesterday as the deduction is still at the rate of 2.5% P/A. Now assume a QS costs $600-$800 for the job.

The sums: $50,000 x 2.5% = $1,250 deductable PER ANNUM (not including other fixtures & fittings that may be claimable) less QS fee ($800).

The sums tell me, even based on the building cost alone, get a QS in. To me, this one is always a no brainer if your property is built after 1987.

Project 1080.

The project: 10 IPs in 80 mths.

 

[Samwise]

OK cool.

With my other question - if i have spent $50K on rennovation work - say $35 on actual building and $15K on fittings - what can be depreciated, if anything?

Cheers, Sam

 

[mja]

OK cool.

With my other question - if i have spent $50K on rennovation work - say $35 on actual building and $15K on fittings - what can be depreciated, if anything?

Cheers, Sam

Hi Sam,

I'm not a QS, but I would say both could. The fittings would depreciate at different rates, depending on the cost. The building would depreciate at 2.5%, like any building would.

Get on the blower to a QS and ask some questions. There are a few that are on this forum. I can recommend Scott from Depreciator.

 

[Samwise]

Yeah might just try and find a friendly QS to chew things through...

 

[depreciator]

Sam, just email me some photos and I'll get a QS to put a ballpark figure on it.

Send me a couple of photos of the outside - front and rear. Then a couple of every room - especially the kitchen.

Maybe 20 in total.

I'm not at work today, but I'm back in the office tomorrow.

[email protected]

 

[Samwise]

Will do Scott, thats very very kind of you.... check your mail

Cheers, Sam