Not sure of the relevance of a 1515.

The work you have done on the property will be regarded as a ‘cost of aquisition’. It won’t be depreciable, but will add to your cost base for CGT calculations down the track. Pity you couldn’t have rented the place out for 6 months – even at a low rent.

Scott

Try this site http://www.depreciator.com.au

Or give me a call and I’ll give you a rundown on depreciation.

Scott – 1300 660033

It’s a coastal town, so that’s in it’s favour. Of course, Bass Strait would be a bit chilly for much of the year. I believe Burnie used to be semi industrial but they’ve lost a bit of industry. I imagine their trying to attract tourists as much of Tasmania is.

I own a little block of units in Somerset – 5 klms outside Burnie. It’s across the road…[Read more]

I’d say it would be hard to justify the expense of a Schedule. You know the cost of the stove. Give me a call if you’d like to talk through the other assets. There will be enough depreciation there to make self assessment of the assets worth doing. Do you have a reasonable accountant?

Scott

Hi Nathan,

I was just speaking to one of our SA guys. That region is closer to Adelaide than I thought. Servicing it is no problem. Of course, we’d still need to make sure there will be sufficient depreciation found to justify the cost to you.

Scott – 1300 660033

Hi Nathan,
For some reason, QSs are in short supply in SA. I’ve got a couple in Adelaide, one of whom does regular trips out of town – I think he’s in Mildura right now.

There has to be plenty of depreciation in an IP to justify the travel cost of a QS. If it’s an unrenovated pre 85 build, there won’t be enough there. We won’t do a Schedule…[Read more]

If they’re new and they’ve got uninterrupted views, I’m wondering if they’re in the Observatory. It’s a great building in a great spot.

I exchange on something there shortly that I bought off the plan. It has proven to be a great punt – 30% gain on bank val since exchange 2 years ago. Having said that, I’m not trying to flog it.

I was up there a week ago to do a pre-settlement inspection. The amount of building activity in town is amazing. There are numerous blocks going up, so…[Read more]

There must be some other things all you savvy investors out there are planning prior to June 30?

Regarding depreciation on pre 85 properties.

Everything depends on the quantity and quality of assets inside the property.

If it’s a 2 bedroom, 1950s home with no carpet, no air con and and an original kitchen, it’s unlikely there will be sufficient depreciation to justify paying a QS.

We have a guarantee that if we can’t find more depreciation…[Read more]

Rip,

It sounds like you may be entitled to more than your accountant has claimed.

Give me a call and I’ll explain all.

Regards,

Scott – 1300 660033

Knuckles,

A building can be depreciated depending on it’s age.

Renovations carried out by previous owners can also be depreciated. Again, it depends on when they were done.

Give me a call and I’ll explain.

Scott – 1300 660033

Hi Myydral,
Alice Springs is of course one of those tricky ones. I had a QS for a while who worked in both Darwin and Adelaide, so he was able to stop off in Alice Springs occasionally. He’s now based in Adelaide. There is a QS I’ve used in Darwin, but it would cost too much to send him to Alice.

There are solutions, though. It depends on the…[Read more]

Hi Mortgage Adviser,
Head Office is Sydney. I’ve Quantity Surveyors on the ground in Perth (and every capital city + regional areas). 1300 660033 is a local call from anywhere in the state. There are 4 guys at Head Office who just man the phones and keep track of jobs. I’ve got someone else who manages the QSs. Ask to get put through to…[Read more]

And now for the other side on valuations…

I had my PPOR valued last week and it came in over what I expected and over a the local agents estimated.

I did a fair bit of preperation for the valuer, but it still took me by surprise.

Scott

Hi KP,
I’ve heard there are some QSs who only touch newly settled properties. Not sure why. It’s nothing to do with any sort of ATO crackdown. Many of the Schedules we do these days are backdated up to 4 years.

Gatsby, to take Derek’s point, if the buildings were constructed post July 85 and you haven’t claimed anything on the construction, it’s…[Read more]

Yep, there are some in existing accountancy software packages. The accountants I have spoken to lament that they aren’t comprehensive enough.

And yes, we would envisage use by the general public as well. Of course, we’d have to charge a nominal fee – perhaps $20 per use. This may not be acceptable to the general public.

It’s all part of the…[Read more]

Jaffasoft,
It’s got to be simple enough for me to use. I’ve accepted the fact that computers are probably here to stay, but I have no affinity with them.

Derek,
If we end up doing it, I’ll run it past you.

I need to work out whether the investment will pay off. Haven’t really worked on the revenue model yet. The aim would be to get it into the…[Read more]

Thanks Monopoly,

I’ll check that one out.

Essentially what the calculator will be is a list of everything conceivable thing that can add to the cost base of a property on aquisition, and everything that can be deducted from the sale price on disposal.

We deal with hundreds (literally) of accountants and none that I’ve contacted have a…[Read more]

Hi Steph,

Older houses are different. There will always be problems. It’s like a new car vs a second hand car. Obviously prior to settlment you need to check that there have been no changes to the property since contract exchange.

The biggest problem with new buildings is water penetration. Short-cuts taken with membranes and flashings can cause…[Read more]