Who do you use for your Depreciation Schedules?

A residential long term let Depreciation schedule runs for 40years at 2.5% on buildings from when built.

A residential short term let depreciation schedule runs for 25 years at 4% on buildings.
 
A residential long term let Depreciation schedule runs for 40years at 2.5% on buildings from when built.

A residential short term let depreciation schedule runs for 25 years at 4% on buildings.

My DS's all run for a 20 year period.
 
I use fullylucky.... they send me an excel spreadsheet :p

Just kidding, i use depreciator... had around 5 through him now, easy to work with :)
 
A residential long term let Depreciation schedule runs for 40years at 2.5% on buildings from when built.

A residential short term let depreciation schedule runs for 25 years at 4% on buildings.

No residential depreciation schedule that has capital works @ 4% over 25 years is valid any more. The cut-off for this was September 1987, which means that the 25-year period finished in 2012.

My DS's all run for a 20 year period.

While most of the numbers remain steady after 20 years, this isn't always the case and can depend on the method of claiming. A depreciation schedule should cover 40 years.
 
My DS's all run for a 20 year period.

That's not good. Some schedules also have other concerns :
- Not complete. They run for 10, 20 or even less years
- Do not include a schedule to summarise all deductions year by year that agrees to the total costs etc (handy for CGT calcs)
- Don't use a year date. They refer to Year 1, Year 2 etc....Drives me nuts trying to work out which year is which.
- Outdated and don't include low value pool (Not always important)
- Only provide one basis for depreciation - DVM or PC. Not both.
 
I always try to stay out of these threads.

Putting aside the dopey Schedules that just run for a year or two, nobody will use a Depreciation Schedule that runs for 10 or 20 years without it needing to be updated. That's a long time in the life of a property. Properties need to have improvements made to keep them rentable. Any improvements mean a Dep Schedule needs to be updated. We update dozens of Schedules per week free of charge. I see them as a 'living document'. In a way, it's a good test of a provider. I suspect people who use one of the cheap providers and go back to them after a couple of years and ask them to update the Dep Schedule with a kitchen reno end up disappointed.

Oh, and short term traveller accomodation can be claimed at 4%. Be careful, though, the ATO's definition of short term traveler accomodation is pretty restrictive.

Thanks for the kind words all.

Scott
 
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No residential depreciation schedule that has capital works @ 4% over 25 years is valid any more. The cut-off for this was September 1987, which means that the 25-year period finished in 2012.

Chris, Can you clarify what's being said below, as per this ATO link.

Note: Where construction of a building to provide short-term accommodation for travellers commenced after 26 February 1992, the rate of deduction was increased to 4%.

For apartment buildings, the 4% rate applies to apartments, units or flats only if you own or lease 10 or more of them in the building.

The deduction can be claimed for 25 years from the date construction was completed in the case of a 4% deduction.
 
Chris, Can you clarify what's being said below, as per this ATO link.

Note: Where construction of a building to provide short-term accommodation for travellers commenced after 26 February 1992, the rate of deduction was increased to 4%.

For apartment buildings, the 4% rate applies to apartments, units or flats only if you own or lease 10 or more of them in the building.

The deduction can be claimed for 25 years from the date construction was completed in the case of a 4% deduction.

The short term traveller rate is a different one to the former rate Chris was referring to. Its often difficult to meet the ST traveller rules unless its a business.
 
I always try to stay out of these threads.

Putting aside the dopey Schedules that just run for a year or two, nobody will use a Depreciation Schedule that runs for 10 or 20 years without it needing to be updated.

True, but better to have it and not need it than to need it and not have it. It's no skin off anyone's nose to include another 20 years.

Oh, and short term traveller accomodation can be claimed at 4%. Be careful, though, the ATO's definition of short term traveler accomodation is pretty restrictive.

Chris, Can you clarify what's being said below, as per this ATO link.

Note: Where construction of a building to provide short-term accommodation for travellers commenced after 26 February 1992, the rate of deduction was increased to 4%.

For apartment buildings, the 4% rate applies to apartments, units or flats only if you own or lease 10 or more of them in the building.

The deduction can be claimed for 25 years from the date construction was completed in the case of a 4% deduction.

I did say "residential", which short-term traveller accommodation isn't, for the most part. We've been in touch with the ATO about this numerous times and, as with a lot of things in taxation, it's not black and white. For example, we were given an interpretive decision on serviced apartments that can be found here:

http://law.ato.gov.au/atolaw/view.h...99991231235958&recnum=11&tot=293&pn=ALL:::ALL

Boiled down, we were told a serviced apartment (which can be seen as short-term traveller accommodation) should be treated as a normal unit but that the accountant can make the decision. The information to choose 4% can easily be gleaned from our report's figures and of course we can update the report to reflect the 4% if asked to do so.

I hope that helps. As for owning ten or more, I suppose that's an exception I wasn't thinking of.
 
True, but better to have it and not need it than to need it and not have it. It's no skin off anyone's nose to include another 20 years.





I did say "residential", which short-term traveller accommodation isn't, for the most part. We've been in touch with the ATO about this numerous times and, as with a lot of things in taxation, it's not black and white. For example, we were given an interpretive decision on serviced apartments that can be found here:

http://law.ato.gov.au/atolaw/view.h...99991231235958&recnum=11&tot=293&pn=ALL:::ALL

Boiled down, we were told a serviced apartment (which can be seen as short-term traveller accommodation) should be treated as a normal unit but that the accountant can make the decision. The information to choose 4% can easily be gleaned from our report's figures and of course we can update the report to reflect the 4% if asked to do so.

I hope that helps. As for owning ten or more, I suppose that's an exception I wasn't thinking of.

Thanks Chris.. yeah I did have serviced apartment in my mind when posting but it also appears another one of those ATO gray areas as you've rightfully mentioned.
 
It's not something we publicise much but if you do mention Somersoft you will get a little bit off the fee (and if you send me a private message I'll make sure you're personally looked after).

We don't generally do large discounts in this sort of context and prefer to let our work stand for itself. Fee isn't everything (most people here appreciate that you get what you pay for) and we like to focus on the net value: the cheapest report is the one that gets you the most deductions and, boy, do we do a lot of research on that.

That said, I can't go into sales mode here so I'll echo what many have already said: if you get one, go with a major provider that people recommend. If you think some of the options at the cheaper end of the market sound too good to be true then that's a good instinct to trust.

Hi Chris;

I am new to the forum would like to have some advice for the depreciation schedules as just bought 1st IP.

Mine is over 40yrs old small unit with one bedroom. Some tiny renovation may be done from the last 10 years, I am not sure if it is worth to be estimated for the depreciation?

If I would like to add airconditioner to the unit, I should do it now or after I have a tenant?

If I will be better for the depreciation schedules, the service fee for Deppro and BMT seem to be a bit more than I expected. Is it to have a little discount for it?

Regards:(
 
Mine is over 40yrs old small unit with one bedroom. Some tiny renovation may be done from the last 10 years, I am not sure if it is worth to be estimated for the depreciation?

It is always worth depreciating a new purchase that you plan to hold for a year or more regardless of any other factors--providing, of course, your goal is to reduce your tax.

Age and size do not matter: all removable fixtures and fittings depreciate from your settlement date (regardless of actual age) and the vast majority of taxpayers will come out ahead in their first year of claiming depreciation.

If I would like to add airconditioner to the unit, I should do it now or after I have a tenant?

If you're not replacing an existing air conditioner then it does not matter.

If I will be better for the depreciation schedules, the service fee for Deppro and BMT seem to be a bit more than I expected. Is it to have a little discount for it?

We do a small discount for Somersoft members. Other than that, all I can say is that, while it seems like a large amount now, you'll most likely profit the first time you use the report (and you certainly will profit the first time you use the report for a full financial year).
 
It is always worth depreciating a new purchase that you plan to hold for a year or more regardless of any other factors--providing, of course, your goal is to reduce your tax.

Age and size do not matter: all removable fixtures and fittings depreciate from your settlement date (regardless of actual age) and the vast majority of taxpayers will come out ahead in their first year of claiming depreciation.



If you're not replacing an existing air conditioner then it does not matter.



We do a small discount for Somersoft members. Other than that, all I can say is that, while it seems like a large amount now, you'll most likely profit the first time you use the report (and you certainly will profit the first time you use the report for a full financial year).

Thanks Chris.

Could you pm me the service fee with a little discount? Anyone recommend at Perth?

If there is no aircon, should I install one or just leave it?

Many Thanks
 
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