All Topics / Help Needed! / Quick Question: How do you calculate depreciation?

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  • Profile photo of blazeblaze
    Participant
    @blaze
    Join Date: 2007
    Post Count: 60

    Hi,

    During the tax return how do you calculate your property building depreciation?

    Thanks,

    blaze

    Profile photo of blazeblaze
    Participant
    @blaze
    Join Date: 2007
    Post Count: 60

    Any lights? ^_^ or is my question unclear?

    Profile photo of PudestconPudestcon
    Member
    @pudestcon
    Join Date: 2005
    Post Count: 64

    The best way is to get a quantity surveyor (QS) to do a depreciation schedule for you.  It is well worth the $400-$500 it will cost you.

    Profile photo of yarposyarpos
    Member
    @yarpos
    Join Date: 2004
    Post Count: 247

    depreciation is calculated by taking the construction cost of the building (not the pruchase price, unless you are building it new) and dividing it over the deemed useful life of the building.   A quantity surveyor can assist by determining the historical construction cost of an existing building, and providing a depreciation schedule.

    Profile photo of blazeblaze
    Participant
    @blaze
    Join Date: 2007
    Post Count: 60

    Hi Thanks for the answers guys.

    Can we learn to calculate it ourselves? Or we basically need the QS otherwise the depreciation we claimed might be rejected by the ATO?

    Profile photo of James007James007
    Member
    @james007
    Join Date: 2007
    Post Count: 64

    Blaze if the property was built before 1987 then you will not be able to claim the building depreceation, QS can i think depreciate things like existing Air Conditioners, Hot Water systems, (Fixtures and Fittings) but if its under a certain combined value then its not worth getting a QS out. Please correct me if i'm wrong guys

    Profile photo of blazeblaze
    Participant
    @blaze
    Join Date: 2007
    Post Count: 60

    So on what grounds I should or should not get a QS?

    Profile photo of WakeWake
    Participant
    @wake
    Join Date: 2003
    Post Count: 123

    My understanding is that the ATO can reject your claim if it can't be substantiated. Unless you really know what you are doing I wouldn't risk doing it yourself. Some of the companies have a policy that if they look at the property and you can't claim at least the cost of the report in the first year they won't proceed ie they won't go ahead if its not worth it for you.

    We have been amazed at the amounts we have been able to claim on older properties where we almost didn't bother having one done. Of course, for a new property it should always be done. Its also not as simple as using the whole construction cost as capital works because some components are classed as fixtures and fittings as opposed to building, and some costs of construction can't be depreciated. It's a specialist field.

    Wake

    Profile photo of club44club44
    Participant
    @club44
    Join Date: 2007
    Post Count: 7

    Anyone know of a QS in the NT? (Preferably Darwin)

    Profile photo of tajellatajella
    Member
    @tajella
    Join Date: 2008
    Post Count: 4

    Hi – I used http://www.austtaxonline.com.au for my investment property in Adelaide – they said they also serviced Darwin – so give them a call!!

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