All Topics / Legal & Accounting / We are just about to rent our property out for the first time after renovating it over the last year or so

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of macnet1macnet1
    Member
    @macnet1
    Join Date: 2009
    Post Count: 3

    We are just about to rent our property out for the first time after renovating it over the last year or so. Its a fibro (pre 1980's house bought for $217,000. We are advertising to rent it out for $230 per week. Ok question do we need to get the property valued before we rent it out for accounting deprecation purposes, also can we claim things like rates, rebuilding a car port and renewing a garden shed etc.

    I also ask if one can recommend an accountant in the Kellville area that can help with gearing as we are new to that also.

    Cheers
    Mark

    Profile photo of ConstructivityConstructivity
    Participant
    @constructivity
    Join Date: 2009
    Post Count: 6

    Hello Macnet1,

    The tax depreciation valuation does not need to occur prior to renting out. For tax depreciation, it is beneficial for the owner to have a tax depreciation schedule prepared sooner rather than later, as depreciation is based on the construction date. You can still backclaim depreciation and deductions, but for a limited period of time.

    Rebuilding a carport or garden shed may be claimed as capital deductions. Rates may be claimed as an immediate deduction.
     
    Keep in mind that the costs for depreciation or immediate deduction will need to be incurred during the time it was used for income-producing purposes and apportioned for the time it was used for income-producing purposes.
     
    Regards,
    Constructivity
    http://www.constructivity.com.au
    Phone: 1300 855 281
    Tax Depreciation Schedules – Sinking Fund Forecasts – Insurance Valuations

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    Where you might need a valuation is if the house is classified as your main residence for the past 12 months and you rent it out and then claim another property as your main residence to now live in.
    When you go to sell later for the investment property the original cost base needs to be known so you do not pay Capital gains tax for the last 12 months if it was a Main residence.
    In ten years time you will need records of what the value was when you started renting it out for capital gains tax records.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.