It's a bit complicated. If you have been using the Low Value Pool, and the Assets (stove etc) you tossed out were in the Pool, they really should stay there. The new Assets you add – if they are between $300 and $1,000 – need to go into the Pool (if you're using it).The structural work you have done you will claim at 2.5% under the building a…[Read more]

Did you know it's possible to claim the cost of removing asbestos in an IP as a tax deduction? There is an ATO ID on this: ATO ID 2004/720I'd say you would need to rent the place out for a while before doing the work.Scott

Gosh, it's ages since I've been here – someone told me my name was mentioned.Emma, in terms of redressing things, much will depend on what you have claimed and how up to date your tax returns are. As Neil said, there are a few things in play here.To answer your question about getting a pre and post reno Schedule done, I would definitley get one p…[Read more]

Yep, that would be fine. Just knock a bit off the original value. It's more than likely going to be less than $1,000, too, so if you are using the Low Value Pool you can bung it in there.Scott

Our Sunshine Coast guy would go out to Kingaroy.Send me an email and tell me what you can about the property – attach photos if you have them – and I'll work out a cost and likely depreciation [email protected]

We do them.So do Washington Brown and BMT. We're all national.But we use qualified people to carry out inspections, so we'll be more expensive than the cheaper guys.Scott

Resi and commercial have different dates and some different rates.Some commercial started in 79. Then more in 82. Resi kicked off in 85.Commercial fitouts in buildings of any age can be claimed if the fitout was done post 82.Scott

I thought there were a few QS here. I'll try and answer all your questions, Frosty:1. It doesn't matter what a previous owner has or hasn't done in regards to depreciation. In some commercial contracts of sale, there will be a written down value for Assets, but I've never heard of thgis happening in residential. (As an aside, if anyone os buying a…[Read more]

With these sort of places, cleaning/laundry costs per visitor can often work out at 20% of the gross rent.You'd probably end up with a place that is neutrally geared.And hard to onsell.But you'd have somewhere cheap to holiday – it's not a bad place, Treetops.

If it's a pre 85 built property, you may not need a QS. With older properties, the building itself is not able to be depreciated (unless renovated post 85). So the only depreciation will be in the Assets – fixtures and fittings. Under the Self Assessment provisons, taxpayers are allowed to estimate the value of the stove, carpet etc. There are…[Read more]

Depends on the total cost – any clues?Let's assume the house cost $140K in total.Of that $140K, maybe $125K will be 'building'. At 2.5%pa that's going to be $3,125 pa for 40 years from when the place was built.The remaining $15,000 is Assets (fixtures and fittings). These depreciate at different rates as Duckster said. You would possible claim a…[Read more]

PropertySeeker,Ideally, a QS visits the property. But if it's a pre 85 built property, that may not make sense. Or if the property is in the middle of nowhere it might be too expensive. A good QS group (not mentioning any names) will work out a sensible solution.When you commission a Depreciation Schedule, pay for it, and use it in your tax, you…[Read more]

This one comes up alot.Anything you claim on the building is added back when you do your CGT calcs.Depreciation claimed on the Assets (fixtures and fittings) is NOT added back. And in many Schedules, there is more depreciation in the Assets than is claimed on the building.Scott

Magic,The viability of doing a Depreciation Schedule on a pre 85 unit depends on two things: the quality of the Assets (fixtures and fittings) and the length of time you have owned the property.Let's say it's a recently purchased, pretty basic unit with no flash appliances. The depreciation in the first year may be around $800-$1,000. Second year…[Read more]

I really must look at this forum more often.Sallyann, you may never read this response given your post was so long ago, but the ATO would likely regard the original building as a pre 85 structure and ineligible for the special building write-off (that's the 2.5%).Similarly, you would be pushing it trying to get a deduction for transport to…[Read more]

Prices up there have certainly come off over the last couple of years. The fact that Virgin are now flying jets there (ex Sydney only) is good for the holiday apartment market. I've also heard that developers are keeping their powder dry and no big new apartment buildings are imminent. That should reduce the over supply and perhaps help prices…[Read more]

I really must frequent this forum more often.mrtender, from your description of the work you are doing, it's all 'building' i.e. depreciable at 2.5%. So if you spend $20,000, that's $500 per year.If when you reno the kitchen, you replace the appliances, there will be higher depreciation in them.Also, you mention the house is around 20 years old. R…[Read more]

Hi t803815,The $275 option is only for clients with a new property who have a contract with a builder that has a total price, plans, Asset list etc.  When all that information is available, the ATO want it to be used. We also usually have a chat with the builder when doing these. They don't come up very often. The gang would have just mentioned…[Read more]

'The folks at Depreciator must have changed their guarantee. 'Nope, it's always been that. I think we were the first company doing depreciation work to have a guarantee. They're pretty common now.We always like to have a QS inspect a property and put the costs together. I think the Australian Institute of Quanitity Surveyors (AIQS) also prefer…[Read more]

Yep. And yes many older properties yield decent depreciation.A good QS company will find out enough about your property, though, to make sure the effort and cost of getting a Schedule is worthwhile. That's what we do, anyway.Scott