Hi all. I understand how capital write off works but i have one question on depreciation.If you claim for example carpets at say 7.5% over 5 years(they were made up figures) and its worth $500 dollars taxible income reduction. Does that mean after the five years you can no longer count it as a reduction unless you have replaced the carpets in that time.If so that means if your IP has held up well and required no depreciatable items to be replaced over say five years or more.You could no longer claim anything unless you started to replace items.Is this the case .I hope that makes sense.[eh]
Gday. Yes You are right I think Devo. Five years is a long time though for the Property to “Hold Up” well. The little things add up. Lets not forget the humble Cistern on the old Caroma for which you have replaced many a rubber or washer, or worse still paid the local Plumber vast amounts of money on numerous occasions to repair! The pesky Tap that seems to have had more washers than your local Laundromat. Over five years the sacred Dunny gets more use than a shoppin trolley at the Supermarket! It could also be descibed as a “Money Pit” to the Creative Accounter! I wont even start on the cost of replacing Dunny Seats every year!!
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.
ScottTax Depreciation Schedules
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1300 660033
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http://www.depreciator.com.auHi Devo,
Here’s the tax office download that may help you further.
http://www.ato.gov.au/content/downloads/NAT1729-06.pdfAmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Thanks, thats the point i was trying to get at. Also what happens when it is already part depreciated. For example the house i am buying had many of its depreciatable items fitted new in 2003.When i get a quantity survayor in how is it worked out.
Originally posted by depreciator: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.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auSomeone (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 curtains etc on the day the property is first available to be let – in your case probably the day after settlement.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
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