It doesn't happen anywhere, except with commercial property.Of course, there is an obligation on the part of vendors to provide construction costs if they know them, but few do.

Suzie, cars etc have book values, so it's easy to know what they are worth for depreciation purposes. Buildings are tougher, and the ATO has been saying to accountants for years that they cannot have a stab at construction costs because they don't have the relevant qualifications.If the builder can get actual costs, your accountant can use them.…[Read more]

"An easy solution is to offer the tenant a couple of nights free accommodation in a near by hotel for a weekend and do the painting then.  Alternatively find out if the tenant is taking any long weekends away or holidays and do the painting whilst there gone."I've known people to do this and then be accused of damaging the tenant's property. Much…[Read more]

Ao, to answer your question:"just wondering if there's any significant differences between depreciation of brand-new properties and refurbished properties?"It depends entirely on the extent of the refurbishment and the nature of the work done. A renovation in a capital city can easily cost more than the price of a new project home.Scott

Sq, if you have previously bought older properties – pre 85 built – the only depreciation in them has been in the Assets (fixtures and fittings). According to the ATO, it does not take any particular expertise to estimate the value of Assets.With a newer property, though, somebody will have to estimate how much it cost to build. The ATO has been…[Read more]

Cadan,With the building, you need to pro rata the claim for the days in the year when the property was available to rent.The Assets (fixtures and fittings) are ascribed a value on the first available to let date. Scott

Someone (a QS would be ideal) will have to put a value on that 3 year old carpet.
Often, when people purchase commercial property there is a written-down value for Assets in the contract and the purchaser is stuck with them. This rarely happens with residential property.
So a QS will work out a value for the carpet, the stove, the air con, the…[Read more]

Devo, I’m not exactly sure what you’re asking.
If you have, say, carpet and you depreciate it, when the value of the carpet gets to zero, that’s it i.e. you’ve written it off in full and there is no more to claim on that carpet.
Then when you put new carpet in, you’ll start to depreciate that.
Scott

Tax Depreciation Schedules
Australia wide…[Read more]

I suspect it’s not all that hard to find a term deposit rate at a bank that is higher than 6.25%.
Scott

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

I wouldn’t use depreciation as something that really dictates a purchase decision. I sort of see it as icing on the cake. Yes, it can assist with affordability though. The new unit will give you more depreciation, but many people will say you’re better off with the home because you’re buying a plot of land and it’s land that appreciates.
I would…[Read more]

It doesn’t really ‘work differently’ for homes vs units. Depending on when it was built, the building can be depreciated, as can the Assets (fixtures and fittings). If you mean which will yield more depreciation, a new unit will tend to give more than an old home. That’s a huge generalisation, but with more specifics from you I can be more…[Read more]

Cherry Pro, just thinking a bit more about this:

Interest costs $29000 pa
Other property expenses $6500 pa
ie. total costs $35500

Rent $18500 pa
Depreciation $17000

I think you might be a bit confused. Depreciation is just another ‘outgoing’, or cost. It’s a tax deduction you treat the same as rates, management fees etc.
But it is a ‘non-cash…[Read more]

You need a Quantity Surveyor who understands depreciation – many don’t.
A QS will estimate the cost of that reno on 03. You will be able to write it off at 2.5%.
Then the QS will then put a value the Assets (appliances, carpet etc) as of the first available to let date i.e. when you made the property available to let.
Some of these Assets will be…[Read more]

Julie, kitchens are building i.e.2.5%.
$17,000 depreciation Cherry Pro? That must be a pretty flash property. Where did you get that figure?
Scott

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

Guardian Partners are at Gosford. Bit of a drive, but Michael Armstrong is very good with property.
Scott

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

Rob, if you’re a tradie, talk to your accountant. Do you have a company? Maybe you can do something about invoicing for your labour. Either way, I suspect you don’t need a QS this time. There will depreciation there to claim, but you’ll have the costs.
Scott

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

I spoke to a forestry guy a few years ago and he said it’s a bit of a myth. Apparently there was a type of decking that had grooves put in one face to disguise checking i.e. marks. People thought it was put there to stop bowing or keep it dry underneath. So then there was an expectation that all decking had it. He said guys who work in timber…[Read more]

Yes, but if you hold the property for longer than 12 months, you get the 50% CGT discount.
Devo, some of that $150K will be ‘building’ and some will be Assets (fixtures and fittings). Roughly speaking, the building component may be $140K. That’s going to depreciate at 2.5%pa i.e. $3,500pa. The remaining $10K may be Assets. They depreciate more…[Read more]

I tend to agree. I havejust read ‘0 – 130’ and it seems that 10% or 20% deposit is required to make most IP’s CF+. Where does the average single income family with a mortgage, kids and a car loan find between $10k and $50k each time to buy an IP, let alone legals and stamp duty

You’ll find that when Steve wrote that book (5 years ago?) the…[Read more]

I remember someone saying once that when big retailers move into a town it’s a good sign because they have done lots of research and reckon the town is a goer.
Scott

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