I bought a house along with the furnitures for $83,000. Furniture at 2nd hand price about $2900.
WHat can i do to get the most depreciation or tax deduction from it?How do they know how much to put depreciation on for the furniture?
In my case, is it better to increase the furniture value, and decrease my offer for the house? (by adjusting the house and furniture component of the $83000).
Pls help fast!
I agree you’re better off to increase the price of the furniture. You save on stamp duty & you get a better depreciation thereby reducing your taxable income.
Fullout,
Haveyou checked that the furniture complies with fire standards? Eg, a couch that has a fire retardant in it etc etc… I heard a horror storey of someone that bought a house fully furnished and coz the furniture was so old it didn’t come up to “tenant” standard and he had to get rid of the whole lot and buy a whole heap more! Check out fire regulations to make sure the furniture will pass.Steph.
Success is 1% inspiration and 99% perspiration.
The things that come as “Furnitures” are
Beds, drawers, sofa, dining table, Tv, video, lawn mover, Washing Machine, Fridge, Microwave, and the Oven.
They are in good condition, only about 2-4 years old.
So these are tax deductible items huh?And the value (to base the depreciation on) is determined by how much i bought it for from the Seller?
hey guys, what about the deductible items. How would my accountant know how much is the value of the fittings like lights, oven, heater, carpet and others?
Does the seller need to give me a list of their current value or something?
Hi. I think that if you are after a hassle free way to deal with furniture depreciation, you should get a valuer in to provide the values of each item. Get them to do the whole house. Make sure you know exactly what is coming with the property also…have it in the contract, or maybe when you take control you find something missing.
Just my opinion, I have no experience doing this though. If you have a valuation done, it is easier to justify to the tax office. Sound right?
Scott
Get a quanty surveyor in to do the whole deal. The house, fixtures and fittings and furniture.
My clients recommend Deppro.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
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