No idea what the cost would be to replace underground tanks. Obviously much would depend on their size and position. I guess first thing to find out would be who owns them. I’m sure with that sort of thing there would have to be records kept of when they were installed, too. I wonder whether there would also had to have been regular inspections?…[Read more]

I think those tanks have an effective life of around 10 years. Some would last longer, some less.

And as Steve mentioned, if there is a problem with a tank it can cost a fortune to rectify.

That’s why nobody wants to own them. In many cases the tanks are paid for by the oil companies. I’m just speculating here, but I’d say the arrangement would…[Read more]

Depreciation is a bonus. I sort of like regional purchases to stack up without it, which is pretty illogical I guess. Having said that, obviously my metro properties have shocking yields and depreciation compounds the deductible loss, which is great when I’m paying so much tax.

Looking for properties beyond the net is critical given that so many…[Read more]

The property I bought before my most recent purchase was in Inverell – 1.5 hours west of Armidale. I didn’t do much research, but Inverell has got a reasonable population and I gather some of the smaller surrounding towns are losing residents to Inverell – Tingha for example is a ghost town. I’m not sure exactly what the yield is on my place…[Read more]

I have the same problem when asking them tricky questions about depreciation. This time of year in particular they must bring in lots of casuals to man the phones.

I probably phone them every second day to check up on the odd obscure thing – we get lots of clients trying very hard to push the envelope.

When I get an answer, I then call back and…[Read more]

That article is interesting.

Proportionally, we find lots of problems in newer buildings are related to water penetration. If it ever rains again on the NSW coast, there will be lots of problems surface. There have been a huge number of building finished since the region last had a week of solid, driving rain. And they were finished in a rush…[Read more]

Further to Yack’s comment, it’s only depreciation on the building that impacts upon the cost base for CGT calculations. Depreciation claimed on the Depreciable Assets (fixtures and fittings) doesn’t come into the equation. In the first 5 years or so, depreciation on the Depreciable Assets is often greater than that on the building itself.

Now,…[Read more]

Hi Jo,
Claiming depreciation does not affect eligibility for the 50% CGT exemption. What was the article?
Scott

fjficm,

I’m presuming his fee (which you quite rightly won’t pay) was at least pretty low.

And therein lies the dilemma for investors. Is it worth trying to save a couple of hundred tax free dollars on a Tax Depreciation Schedule and hoping that your accountant spots any errors (and doesn’t charge you fix them)? Don’t forget, if you pay for a…[Read more]

A tax break has never been my motivation to purchase anything. As Derek said, they’re ‘icing’. I like property purchases to stack up without factoring in tax breaks.
Scott

No Kay, you just would have had to have paid for it by June 30 to claim the cost on your 2004 return. We had well over 100 people paying for schedules Tueday and Wednesday this week. The report itself can be done anytime. Right now, we’re working on a 3 week turnaround time providing there are no access issues.
Scott

Leigh I’m not sure exactly where Wimmera is, but we’re doing some Schedules in some pretty out of the way places of late.

And depending on the nature of the property you may not even need a QS – I can explain more about that.

I’m back in the office on Monday. Give me a call and I’ll see what we can do.

Scott – 1300 660033

Painting is a repair if you’ve been renting the property out. If you acquire a property and then paint it before renting it out the cost of that work becomes a ‘cost of acquisition’. It’s not even depreciable. The cost is added to your cost base for consideration in your CGT calculations upon sale. That’s why I always advise people to try and get…[Read more]

Hi all,

Derek is of course right. My accountant advised me similarly when I replaced a hot water heater some years ago. But there may be some room to move.

If the current cooktop (or whatever) was beyond repair and had to be replaced, you could possibly argue that it is a repair. If you go down this road, the safest course of action would be to…[Read more]

Yep. Very busy this time of year. At least it’s winter. We’re lucky that our slow season coincides with summer. Happy to answer any questions, whether they’re general or specific. Once you’ve got your head around a few key dates, depreciation is pretty straightforward.

Scott

A depreciation entitlement would have been factored into the financial projections given to you. Check what rate they have used for the building depreciation – Divison 43. They’ve possibly used the 4% rate for ‘short term accomodation’. I suspect that a unit in that property would not qualify for that rate, but I would need to know a bit more…[Read more]

Vicgirl,
Samples can only be very general. I’d rather not use them, but there’s an expectation that we provide some indicatives. Those samples were from actual jobs, but every job is different.
There are a huge number of variables that affect depreciation. We sat down a while ago and looked at what we would have to do to put together a really…[Read more]

Any position this close to an election is irrelevant.

Damien,

Like Rugby I’ve got a mix of properties. While I’m drawing a salary and paying lots of tax I’m happy to have negatively geared properties in great spots. One IP I’ve got in Sydney is worth $800K and rents out for $500pw. On the face of it, a dumb investment.
It’s a renovated 1900 terrace in Annandale, though (that’s where people who can’t…[Read more]

I’ll get in touch with my Port Macquarie QS and see if he knows anyone. He obviously comes into contact with most of the PMs up there, so he should know who seems switched on.

Scott – 1300 660033