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Twenty years is definitely not too old to obtain a tax depreciation schedule!
Depending on when it was built, you may even obtain deductions on structural improvements (e.g. pavings, fences, planter boxes, retaining walls, etc.) ontop of the building deductions and depreciation available on the property. Keep in mind that the fee for the tax depreciation schedule is tax deductible as well.
Regards,
Constructivity
http://www.constructivity.com.au
Phone: 1300 855 281
Tax Depreciation Schedules – Sinking Fund Forecasts – Insurance ValuationsHello 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 ValuationsNo shortage of help in this department!
We provide tax depreciation schedules, sinking fund forecast reports and insurance valuations.
Regards,
Constructivity
http://www.constructivity.com.au
Phone: 1300 855 281Hello HoBe,
Increasing the replacement value of the building is a sure fire way to increse the insurance premium, as it is directly related!
When you look into the insurance valuation for your property, consider not only the cost the construction itself (i.e. trade costs), but also costs associated with demolition and removal offsite, professional fees, authorities fees and escalation to name some.
Regards,
Constructivity
http://www.constructivity.com.au
Tax Depreciation Schedules – Sinking Fund Forecasts – Insurance ValuationsHello all,
The Australian government has helped encourage construction spending of new buildings through tax depreciation. Depreciation rates for the plant and equipment of investment properties had increased when the building's start time was on and from 10th May 2006 (current at the time of posting this comment!). This potentially means obtaining more tax depreciation over a shorter period of time!
Kind regards,
Constructivity
http://www.constructivity.com.auHello Greg,
As long as the property is used as for income-producing purposes and generally at market rates (even in part), the owner(s) of the property (assumedly including yourself) can claim tax depreciation.
Keep in mind that if there are joint owners, depreciation will need to be apportioned based on the legal interest in the investment property and that depreciation applies for the time the property was held and used as an investment property!
Good luck with your new home!
Kind regards,
Constructivity
http://www.constructivity.com.au
