We’ve just bought an IP about 12 years old. I asked the real-estate agent about a depreciation schedule, he said that the owners do have one, but it’s with their accountant.
My question is-is it worth trying to get the schedule from the owners? Does a schedule start from the “life” of the house, or from when a new owner takes over, or what? If we get the schedule, can we use it for our purposes, does it start from year 1? Or do you need to get your own schedule, and it works from when you own the house?? Very confused [blink]
We’re gonna go through deppro anyway to get one, just wanted to find out if it’s worth saving $500+ to get the schedule from the owners, and whether we can even then use it. Thanks
We’re gonna go through deppro anyway to get one, just wanted to find out if it’s worth saving $500+ to get the schedule from the owners, and whether we can even then use it.Why not ask Deppro if it’s worthwhile? We always look for the most cost effecient way to help our clients.
1. The building starts depreciating from when it was built. In your case, it’s going to depreciate at 2.5%pa.
2. The old Schedule would be useful because it would have the original cost of the building. having that cost will reduce the work for the QS – unless there are significant renovations.
3. The Assets (fixtures and fittings) can be valued at the date the you make them available to be let. It will essentially be a second hand replacement value. In the existing Schedule, most of these items will be written-off. You don’t want to inherit this Schedule. And you don’t want any mention of the Assets being written-off in the contract of sale.So the old Schedule is useful as reference, but it would be a good idea to get a new one. Getting the old Schedule would save you money on QS fees i.e. it shouldn’t cost $500.
Scott
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http://www.depreciator.com.au“We’ve just bought an IP about 12 years old. I asked the real-estate agent about a depreciation schedule, he said that the owners do have one, but it’s with their accountant”
Hi Paguatao
I’m new at this posting, but i will try my best. This is my opinion hope it will help, Ta
i recommend that u get existing depreciation schedule, construction cost will not change, if you can ask the previous owners for a copy of accountants schedule, make sure that the copy includes capital works expenditure. If u can get all this info that will help ur accountant. Capital works problem solved.
The plant and equipment included in the existing schedule would need to be refreshed, u have purchased a house and the assets in the house for which u paid consideration, the same assets on this schedule may not have any value at all, or very low, but u have paid money and I recommend that this part of the schedule be re-estimated, u can under self assessment put values and give them to ur accountant, but if u not sure consult professional, in my opinion this report should cost between $300 to $500. Before u consider outlaying any cash speak to ur accountant
Isa
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S
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