Im looking at purchasing a property that was built in Perth in 1986. Can anyone advise if im still able to claim depreciation on this property and approximately what percentage. Is it worth getting in Depro to do a full report?
regards
ReneeHello Renee
The best place to ask is always your accountant naturally.
Having said that as the property was built in 1986 the depreciation on the original building has now expired.
However, has the place had a major renovation since then? New fences, carport, inbuilt cupboards etc.etc. all qualify as capital works and thus are subject to the capital works depreciation. Other items like painting, carpet, HWS etc. are depreciated over a much shorter period so it depends on when they where done. They may also need to be listed in your settlement but I am not sure about that.Here is a link on the subject on the ATO site. There is the possibility to download a PDF file which explains both deductions and depreciation for rental properties.
Hope this helps
ElkaHi Renee,
Our place was built sometime in the 80's (apparently no one can tell me what year which I find strange but anyway..) and we had Deppro do a ds for us. Cost around $500 and the ds shows depreciation starting in yr1 at around $6.5k and going down from there.
So although not huge depreciation, it is still better than nothing, the ds itself is fully deductible & I don't know about other companies but Deppro guarantee they will get you at least double their fees in the first financial year or they give you the ds & refund their fee – so you cant really loose.Cheers
Stellaelkam wrote:
Having said that as the property was built in 1986 the depreciation on the original building has now expired.Not too sure about this!
Still should be plenty of depreciation for you.
Regards
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