What I could claim on this potential IP?

[RedCat]

Hi all,

Looking at an IP at the moment, that has had some good renovation done (owned by a tradie) in the past 2 years. New bathroom, kitchen, re-wired, re-plumbed etc.

It's an older house so no building depreciation but in order to claim on the renovations, would I need to know the costs the vendor paid or would a surveyor be able to work it out? What do I need to know from them to ensure we can make a claim on it? Assuming we can make a claim?

 

[Fourex]

Quantity Surveyor would be able to prepare a report to advise on what you can claim.

http://www.bmtqs.com.au/tax_depreciation_estimates.htm

Not sure if these guys are available near you but you can view the website to get an idea of what the process is.

Last time I had one done cost was $ 600 which you can also claim on tax.

Cheers,

Fourex.

 

[pulse]

The ATO feels you are obliged to try and find out the value of renovations rather than just getting a QS report. I'd get the vendor to write you a letter stating the value of the reno as well as stuff like the oven, A/C etc that may be depreciated faster.


Cheers
Pulse

 

[RedCat]

Thanks Pulse. It can't hurt to at least try and find out the costs

 

[JoshyBoi]

The ATO feels you are obliged to try and find out the value of renovations rather than just getting a QS report. I'd get the vendor to write you a letter stating the value of the reno as well as stuff like the oven, A/C etc that may be depreciated faster.

Although...it is also my understanding that the ATO doesn't take into account gratuitous labour - perhaps the QS is a preferred approach?

 

[travelbug]

I'd send Scott (Depreciator on this forum) an Email. He will advise you. He did 2 reports for me which more than paid for themselves in the first year.

http://www.depreciator.com.au/