All Topics / Legal & Accounting / Depreciation Schedule when builder quotes turnkey price

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  • Profile photo of ladybirdladybird
    Participant
    @ladybird
    Join Date: 2003
    Post Count: 61

    If a builder quotes to build a house and includes in the price, but doesn’t individually itemise , such depreciable items as ovens, gas top, canopy, water heaters etc., how do you value these for your depreciation schedule?

    Is it normal to demand from the builder an itemised cost for the supply and install of these items? I understand that the installation cost (the cost to bring to a usable condition), as well as the supply cost, is part of the initial cost for depreciation calculations.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    The ATO will not accept a breakup provided by a builder, a derpreciation schedule must be prepared by a quantity surveyor, a valuer or an accountant.

    Profile photo of Grow SMSFGrow SMSF
    Participant
    @evolve
    Join Date: 2009
    Post Count: 66

    A depreciation schedule prepared by an appropriate qualified professional on a new property should pay for itself 10 times over in terms of the additional tax savings it generates in its first couple of years.

    If you need a referral to a good quantity surveyor let me know.

    Evove

    Grow SMSF | Grow SMSF
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    Self-Managed Super Fund (SMSF) Specialist Accountants

    Profile photo of washingtonbrownwashingtonbrown
    Participant
    @washingtonbrown
    Join Date: 2006
    Post Count: 44

    TR 97 / 25 Par 28 indicates who can estimate the construction costs where the costs are unknown. Valuers and accountants CANNOT the Par reads like this:

    28. Appropriately qualified people might include:

    ·
     a quantity surveyor, who has expertise in the relevant type of construction;
    ·
     a clerk of works, such as a project organiser for major building projects;
    ·
     a supervising architect who approves payments at each stage in major projects and who may approve individual payments to subcontractors in smaller projects; or
    ·
     a builder who is experienced in estimating construction costs of similar building projects

    Paragraph 27 highlights who caonot:

    27. Unless they are otherwise qualified, valuers, real estate agents, accountants and solicitors generally have neither the relevant qualifications nor experience to make such an estimate.

    Regards

    Tyron Hyde Washington Brown

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