Hi all!
I just purchased a rental property for the purpose of renting to tenants, and I’m not registered for GST. These are my costs incurred
$440 (including GST) for quantity surveyor depreciation schedule
The depreciation schedule is about the estimate of total cost of eight substantially identical curtains $4,000
Each costs about greater than $300 and less than $1,000I also paid for building report $220 and pest inspection report $550. Both include GST.
I researched some tax rules and am not sure about deductions.
Can I claim full deduction of $440 for quantity surveyor fee? Can I claim full deduction of the building and pest inspection report, or should I include them into the cost base of my property? Am I missing something?
Thanks a lot!
Is this your first IP? If yes, then you won't be able to claim any of the cost. If you already have some IP, yes you can claim these costs as part of running costs of the properties.
The building and pest inspection form part of the cost base. You also add stamp duty, solicitors fees etc.
The depreciation schedule can be written off in the year it was incurred as it is an expense attached to the running of the IP.
You need to get yourself a decent, property savvy accountant. They are worth their weight in gold.
As Catalyst has mentioned the QS report can be claimed in the Tax Year in which the expense was incurred irrespective of whether it is your first IP or not (Not sure where that came from).
Your Building & Pest Inspection report costs are added to the cost base however any action taken in regards to the comments of the Pest report can be claimed in the current year.
Legal and borrowing costs can also be claimed in this year however they are aportioned over the Term of the loan of 5 years whichever is the lesser. This also goes for any mortgage insurance payable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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