Hi Frankic,

You’re unlikely to find anyone in Mt Isa who can put together an ATO compliant schedule. If there was anyone there, I would contract them. We go there occasionally.
Your property is not eligible for depreciation on the original building cost – too old. But if the kitchen was put in after Feb 1992, the cost can be depreciated. If the…[Read more]

So yours were only $20 Anibus? I think I will challenge it.

No Mini, they aren’t the ‘rates’. They’re much more than that. From memory, in Tassie the council and water rates are rolled into one.

Scott

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

I think that request for an income tax variation is now called a ‘1515’ i.e. fifteen fifteen.

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

Hi Breakfree,
Sorry, I saw that other post and forgot to reply to it.
As stated, depreciation claimed on the fixtures and fittings – hot water heater, appliances etc – don’t come into it.
A person on that other forum had something to say about this. I think he/she is an accountant and their name is MRY. They wrote something about it being…[Read more]

Make sure you mention to the boys on the phone that you came via the PI forum – you’ll get a discount. I think one of our guys is heading west soon (Parkes area) to do a job.

Scott

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au

Depends on the region – some are tough.

We cover much of the coast and some inland centres at a standard price. We regularly travel to other areas. There is a travel fee for some places, but if we get sufficient jobs we spread it across them or sometimes absorb it ourselves.

Scott

Tax Depreciation Schedules
Australia wide service
1300…[Read more]

Hey Mini, there was no criticism in that post.

I was writing in support of buyers agents (especially you) from the perspective of both buyers and sellers.

As a buyer, I would much prefer to buy after you had put a seller through the hoops.

As a seller, I have to provide more information, but things happen more quickly and there are fewer…[Read more]

Speaking from the other side, I’ve sold through a buyers agent (and will do so again in the next few months).

A good buyers agent will really put a vendor through the hoops to make sure their clients are getting value for money. Minimogul does exhaustive research on a property, including ‘crunching the numbers’ before she sends it out to her date…[Read more]

Gee, that’s an opening for some self promotion if ever I saw one.

We’re a little different from the average QS company.

The problem with the QS industry as a whole is that QSs have traditionally dealt with architects, builders, engineers, financiers, planners etc. Many of them aren’t very good at dealing with ‘mums and dads’.

It’s only been in…[Read more]

I’ve spoken at one of the Reno Kings seminars and seen how they run them. There are group sessions and exercises, real life problem solving etc. They are a high energy, high involvement seminar. I’m not sure whether those guys have a book, but if they do I can’t see how they could replicate everything they cover in a seminar. I think a good…[Read more]

John,

In answer to your questions:

1) None.

2) Nope.

If you purchase a property and elect to do work to it before renting it out, you cannot claim the cost of that work.

It is not a ‘repair’ because you have not been renting the property out. If a property is damaged while you have been renting it out, then it becomes a repair.

It is also…[Read more]

Take Simon’s advice re: getting a quote for the repair.

A repair like that can be tricky, too. If you are contemplating getting the vendor to repair it, you would need to stipulate how the repair is done i.e. if they just buy a can of that ‘shower seal’ product sold at hardware stores and slap it on, the problem will come back.

Ask the building…[Read more]

If you’re planning to do the renovations after settlement and before renting the place out, you won’t be able to claim the cost at all.

Wait till the property has been earning some income before you do anything. Right now, do the minimum required to get a tenant in there.

Scott

Tax Depreciation Schedules
Australia wide service
1300…[Read more]

It gets better….

Only depreciation claimed on the building itself is deducted from the cost base. And in many cases this is less than that claimed on the Fixtures and Fittings, especially in the first 3-4 years.

The other thing to consider is that any property purchased after May 13, 1997 must have the eligible building depreciation deducted…[Read more]

I assume you’ve spoken to an accountant about shuffling the debt?

Regarding the expenditure, you can really only claim it as an expense if the cost has been incurred while you have been renting the property out.

Do only what is absolutely necessary now – wash those walls instead of painting them – and wait till you have at least 6 months of rent…[Read more]

To answer your questions Ronulas:

Yes, you can estimate (self-assess) the value of things like alarm systems and dishwashers ect?
All Depreciating Assets have an Effective Life determined by the ATO. This life dictates their depreciation rate. You’ll find this on the ATO site – good luck with the search.
If the opening value of an Asset is under…[Read more]

Hi Derek,
I doubt whether anybody will use one of our schedules for even 20 years, let alone need one that runs for 40 years.
(And it would probably only be depreciation on the building that keeps running anyway, and that’s a straight 2.5% per year so Year 39 will be the same as Year 2 if the property is brand new.)
When we started doing tax work…[Read more]

Goods and Chattles went to being called Fixtures and Fittings and now they’re Depreciating Assets.
Who knows why.
Depreciation on the Assets is just another outgoing i.e. cost you can claim. It’s no different from other outgoings: interest payments, management fees, rates etc.
In a pre 85 built unrenovated property, the only depreciation available…[Read more]

I’ll have a go at explaining it.

Any depreciation you have claimed on the building itself (not on the Fixtures and fittings within the building) must be deducted from the cost base when you are calculating your CGT. This increases the capital gain, so in effect you pay tax on this claimed amount when you sell.

Let’s say you buy a house built in…[Read more]

Just as an aside to everyone, whenever I need to repair anything in one of my places I get my PM to send me before and after photos. Nobody has ever asked to see them, but I like to know I’ve got them just in case.

Tax Depreciation Schedules
Australia wide service
1300 660033
scott@depreciator.com.au
http://www.depreciator.com.au