when to get depreciation/CGT report and valuation

[sk71]

Hi all

I am planning on renting my unit out in late November. Do I need to get the depreciation report then or can I wait until a bit closer to tax time? I am making quite a big move and would love if there was something I could leave until later.

While I am at it - valuation for CGT. Do I need to get this done as soon as I move also? I am really not sure what my future holds and when or if I will move back here. If I do need it any idea on how much it costs to get done? - I am in western sydney.

Thanks in advance.

 

[sk71]

Anyone????

 

[oneguy]

Can't Help re CGT, no idea.

But I terms of depreciation, unless it's going to be a significant amount, where you can apply for a tax variation, it can wait till you submit your tax return. I'm by no means an expert so hopefully some one more knowledgeable can confirm or deny this.

Also you might want to get the inspection done before you rent it out, simply for ease of access to the place, it might be a little more complicated if you have tenants in.

 

[BMan]

you can get the depreciation report done whenever, the depreciation report is based from when it was purchased then you claim depending what year your up to.

as for the valuation if you dont own another PPOR you can claim the "6 year rule" so dont need to do it for 6 years

 

[Terry_w]

Doesn't make much difference really.

Depreciation report would be needed to do your tax. May be a good idea to get one done before the tenants move in for access reasons.

Valuation for CGT is needed only when you sell and only if main residence exemption not applying. But the valuation needs to be done as of the date it become available for rent.

 

[sk71]

Thanks so much for that, I am a property investor by accident so still learning. Sounds like doing them both when I move out is the best option. I am pretty clueless re CGT and need to do more research, given I am really unsure where I will be living I will get the valuation to cover myself.

Thanks again.

 

[kiwipaul]

Why waste your money getting a valuation done when you move out as if you rent for 2 years and then buy another home you would have to get another valuation done on your origional PPOR once that becomes your new PPOR. Assuming you keep your first home as your PPOR untill you buy another (cannot imagine a reason for not doing this).

 

[depreciator]

Much easier to do a Depreciation Schedule while you are still living there - saves mucking around with tenants. The Schedule can just kick-off on the day you leave.
Of course, the age of the property and the length of time you have been living the will determine whether it's worth doing.

Scott

 

[sk71]

Am waiting on a quote from you guys now Scott. Am waiting to hear from council about how old my unit is - nobody seems to know!

I have no plans to buy another home (cannot afford it!) and will be renting for the forseeable future, so now feeling pretty confused about doing a valuation.

 

[depreciator]

Send me some photos - inside and out. Somebody here will know how old it is.

Re: the Val. How long have you owned the property for?

 

[sk71]

I sent some to Daniel - but realised late last night I forgot to put .au on the email!!!

I have lived here 13 months.

 

[kiwipaul]

I have no plans to buy another home (cannot afford it!) and will be renting for the forseeable future, so now feeling pretty confused about doing a valuation.

If that is your situation forget the valuation (depreciation schedule IS a good idea) as you can keep this property as your PPOR for 6 years whilst renting and selling anytime within this 6 years gives you NO CGT liability. You can even move back in and restart the 6 year clock by doing the whole thing again.