Hi,
If i buy an investment property, say about 7 years old, is the amount i can claim on depreciation any different if either,
1- the vendor used the property as an investment and has already claimed so much on depreciation?
Or 2- the vendor used the property for his PPOR, and so far nothing has ever been claimed on tax?
Would the amount i can claim be the same no matter which situation i bought from??
What about an older property with recent major repairs done.
If the vendor had it as a rental property, the repairs would have been most probably claimed as a tax deduction, if so, can it now not be claimed as part of a building depreciation??Or if the property was the ( vendors ) owners PPOR when the major repairs were done, would it now be claimable as part of the building depreciation allowance? ( for the new owner using it as a rental property ).
Information on repairs, renovations and improvements done by past owners may not always be available. ( as far as whats been claimed for what, etc ).
Do and how would a quantity surveyor work these types of things out?
Any comments??
Frosty1
I thought there were a few QS here. I'll try and answer all your questions, Frosty:
1. It doesn't matter what a previous owner has or hasn't done in regards to depreciation. In some commercial contracts of sale, there will be a written down value for Assets, but I've never heard of thgis happening in residential. (As an aside, if anyone os buying a commercial property, make sure depreciation is 'silent' in the contract – this will be to your benefit.)
2. Repairs done by a previous owner are tricky. Agreed, sometimes you won't know what has been done. If there was, say, a new roof added in the last couple of years you would be able to claim this under the building write-off. It should be pretty obvious. Similarly, if the previous owner bunged in a new kitchen. Maybe they did some underpinning. This could be claimed. It would be up to you to find out what work had been done and approximately when. The best time to do this is before settlement.
Scott
How old before you cannot claim depriciation on resi or commercial. 20years?
and when you do a major fit out iam assuming its all rittin off threw the books at tax time even if the building is old???
Resi and commercial have different dates and some different rates.
Some commercial started in 79. Then more in 82. Resi kicked off in 85.
Commercial fitouts in buildings of any age can be claimed if the fitout was done post 82.
Scott
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