My partner and I have just brought our first property. It is a 4 year old town house in Melbourne.
The place has a current tenant in it with a lease that we will have to honor for the first 6 months.
This means that for the first 6 months it will be an IP, the plan is then for us to move in for 12 months (to get the FHOG) and then convert it back into an investment property.
My first question is how do we go about working out the depreciation on the building and fittings? i.e. do we have to go to a QS or is there another way and do they do the fittings as well or do we estimate them ourselves? Also should we do this in the first 6 months and continue it when it is an IP again or wait till we move out.My second question is if we do things to the place during the 12 months we are living in it such as new curtains and rear decking will we be able to add these expense to the depreciation schedule and claim them as normal once we move out?
I am unsure if it is better to do these things while in it or once we move out and it is an IP.Any help or direction to other threads would be great.
Thanks in advance.
employ a quantity surveyor
They will work out a depreciation schedule you can then hand to your accountant.You can claim the items but you have to proportion it.
Say if curtains have a life as an example of say 5 years. Then 12 months of straight depreciation has to be private unclaimable and straight depreciated by 1/5 for the next 4 years you claim 20% each year. the 12 months is 1 july to 30th of june.
If you are not at 1 july then you have to work out the days by using x days past in past financial year/365 * 20% depreciation at on the last year remaining days left in financial year / 365 * 20% of value.
If diminishing depreciation you have to work out diminished value at start of rental.
Hi Cama20
If the original construction costs were not transferred to you at settlement – you will need an appropriately qualified person to estimate the original construction costs.
To get an estimate yourself now – use our depreciaton calculator – which you can find here http://www.washingtonbrown.com.au
Duckster has answered the rest of your queries.
Regards
Tyron
Thanks guys for your help this clears it up for me.
Another quick question. How do you clame things such as paint for the house or doing landscaping yourself?
Is all the paint or landscaping products you buy put together as one item and depreciated or can you just deduct each item in the year of purchase?Regards
chrishey i am trying to find the depreciation for a mobile phone on a plan and am having some trouble anyone got a clue?
It wasn't easy to find but this is what I managed to dig up !
this look like the latest ATO ruling TR 2009/4 from july 2009
http://law.ato.gov.au/atolaw/view.htm?DocID=TXR/TR20094/NAT/ATO/00001near end of page under T for Telephone but sub listed as Cellular Mobile
Hope this is what you were after good luck !
You must be logged in to reply to this topic. If you don't have an account, you can register here.
