in average, how much depreciations value would a brand new 3 x 2 completely finished villa with floor covering and aircon worth per annual?
I am only after averages here, the costs of the building is about $140000 which is a turn key when it was built, so I am very interested on apart from special building write offs which is 2.5% over 40 years, how much depreciations would a new 3 x 2 villa be able to achieve per annual if it has aircon, floor coverings, windows treatment etc etc?????
is it possible to achieve $5000 in deprecations PA?
many thanks
You have to get the construction cost of the building
The Air Conditioner , Floor coverings, hot water service, curtains are not construction cost but rather fittings.
These all have various effective lives for depreciation and it is hard to find out the effective lives but I would guess around 5 to 8 years. However a quantity surveyor could be employed by you to work this all out for you.
So for example say construction cost was for an example 120,000 then 120,000 * 2.5/100 = $3000 p/a for 40 years.
please note this 3000 is subtracted from your cost base if you claim depreciation. (More capital gains tax)
Then if as an example the fittings came to $20,000 then 20,000 / 8 = $2500 p/a so $5,500 per year in depreciation could be possible but a quantity surveyor would gives you a better idea on the exact depreciation schedule.
This figure is for showing how the depreciation is calculated. As I am not aware of the exact construction costs and what value the fittings are and what the effective life of your fittings are the figure worked out is not accurate and is a guessA quantity surveyor will give a very accurate and detailed depreciation assessment report you can give straight to your accountant .
For building write off it has to be recently built I think the date is 1987 onwards but not completely sure.Hi just wanted to know what happens to depreciation when you sell the building? Will you have to add it back on when you sell it? If so is there a way to avoid this?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
