If the property was built before 1985 but it has recently had a complete makeover – new bathroom, kitchen, floor tiles, etc – can you claim depreciation on any of the above if you purchase it just after the face lift?
That is, we are not doing the renovation ourselves. We are looking at purchasing a block of units already renovated. Nothing more to spend. Would we need the receipts off the vendor. Are copies acceptable? Anything else we should ask for or be aware of?
Thanks heaps,
Fibejebe.
[8D]Get a Quantity Surveyor who will value all for you. Best way to do it. It’s very kind of the vendor to create all those extra tax benefits for you – just don’t tell him/her or they might up the price!!
]Cheers
MelThanks Melbear,
You are a gem!![]
Fibejebe.As always Mel is right.
Sometimes if you do the reno it is better to get a QS in than use the receipts – the reason is receipts don’t show your labour component whereas their estimate for the value of the new kitchen wil include that.
All the best,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon[
]Also, if you are going to do a reno yourself, get a QS in before, as well as after!!
Why? Because they will put a value on the carpets, curtains etc. etc. that you are ripping out. Then you can claim that entire balance in this year, because they are now ‘dead’.
Cheers
Mel
Sometimes if you do the reno it is better to get a QS in than use the receipts – the reason is receipts don’t show your labour component whereas their estimate for the value of the new kitchen wil include that.I’d check this with an accountant and QS, I think that if there are receipts then that is what should be used. I’m not sure that your own time is “claimable”.
Rod.
Rod I wouldn’t on such a comprehensive and probably professional makeover. Sad truth is there is a lot of ‘cash’ work done so personally wouldn’t put too much store in the receipts off the vendor, even if they were strangely inclined to show them to you – I’d just go straight to a quantity surveyor, they have an excellent and normally up-to-date knowledge of genuine costs. Some vendors have already had depreciation schedules done up as a selling tool too.
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Mel
[email protected]Mel,
You misunderstood me. I agree that if I was purchasing a property with an already completed reno, then I would just get a QS to check it out. I wouldn’t bother with the vendor’s receipts either. The QS will probably want to know the date of the renovation.
My comment was actually related to Simon’s post which I took as implying you were doing a renovation yourself using your own labour. Hence you would have receipts for materials but not for labour.
Rod.
Rod,
I have spoken to the QS about doing a report on my property under these circumstances and they were happy to do so.
Thanks for the warning and I will research it more thoroughly.
I just bought the place and am reno’ing immediately so maybe that is why.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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