Where can I find details on age/cost of extension?

Discussion in 'Accounting and Tax' started by Beelzebub, 7th Jun, 2015.

  1. Beelzebub

    Beelzebub Member

    Joined:
    2nd Jun, 2015
    Messages:
    49
    Location:
    Torquay
    Hi guys

    I have recently purchased my first IP which has had a previous extension. My understanding is that as the extension is less than 40 years old I can depreciate the cost of the extension?

    My question is: Do I need to find out the details of this extension in order for a quantity surveyor to add it to the schedule? If so, where can I find this info?

    Any help or advice would be greatly appreciated

    Cheers,
    Beelzebub
     
  2. D.T.

    D.T. Property Lookerafterer

    Joined:
    4th Feb, 2003
    Messages:
    7,181
    Media:
    6
    Location:
    Perth & Adelaide
    You'll need to have a QS go out to do the depreciation report either way.

    For anything that's unknown, they know how to work it out and/or estimate it in a legal manner.
     
  3. Scott No Mates

    Scott No Mates ...and people wonder why?

    Joined:
    25th Jun, 2011
    Messages:
    5,391
    Media:
    144
    Location:
    Sydney - LNS
    Fully lucky might be across this.
     
  4. Beelzebub

    Beelzebub Member

    Joined:
    2nd Jun, 2015
    Messages:
    49
    Location:
    Torquay
    So the quantity surveyor can make reasonable guesses as to the age and cost of reno? :)
     
  5. depreciator

    depreciator Member

    Joined:
    17th Dec, 2004
    Messages:
    4,462
    Location:
    Sydney, NSW
    If it's a decent sized extension, the council may have records of a building application.
    It's going to need to have been built after September 1987 for you to be able to claim anything on the building works.

    Scott
     
  6. DaveM

    DaveM KFC Buyers Agent

    Joined:
    19th Mar, 2011
    Messages:
    4,953
    Location:
    Sydney/Adelaide
    Council is first stop.. but just say "oh hi i am thinking about buying xyz and was wondering what a building approvals are on record". Dont let on about the extension, some councils love to hear about unapproved extensions then turn up to request it be made approved.

    Otherwise sometimes materials are stamped with manufacture date (pvc piping is a good one to look for). Or you can generally tell from the materials used and in particular the colour of materials (brown, silver, white aluminium channel window frames).
     
  7. Beelzebub

    Beelzebub Member

    Joined:
    2nd Jun, 2015
    Messages:
    49
    Location:
    Torquay
    Thanks for the help guys; two rooms were added to the house, I'd take a guess and say sometime in the 90s, but I have no idea.

    I guess first stop will be general enquiry with council. Will let you know how it goes.
     
  8. BMT Tax Depreciation

    BMT Tax Depreciation Member

    Joined:
    21st Mar, 2012
    Messages:
    89
    Location:
    Sydney, NSW
    That's not exactly how it works. New capital works depreciate for 40 years if they were constructed after 1987. A 40 year old building (i.e., built in 1975) has no depreciation on its original construction.

    That's exactly what we do and why you need us!

    I wouldn't bother with the council. If it's a recent purchase then you'll need a depreciation schedule anyway. If the provider finds out that the extensions are claimable as capital works on top of your existing claim then all the better.
     
  9. Beelzebub

    Beelzebub Member

    Joined:
    2nd Jun, 2015
    Messages:
    49
    Location:
    Torquay
     
  10. Koste

    Koste Member

    Joined:
    13th Jun, 2015
    Messages:
    6
    Location:
    Brisbane
    Hi

    Your Quantity Surveyor should do the research for you and establish the build date from either the site visit or council records. On older properties the chances are that the property has had some improvements made over the years which should be included in your Tax Depreciation Schedule.

    Mark