I have recently had a depreciation schedule completed on my IP. Since then i have added a new air-conditioner and entertaining area to the property. Do i need to get a new depreciation schedule prepared for the new work or can an accountant work this out for me?
Just give the invoices to your accountant. They will work it out from there. If you had major house reno's done you may think about a new schedule. But the works your describe will be fine.
Cheers
Thanks Neil for your quick response. Very much appreciated
Hi Neil,
Last FY I organized a depreciation schedule for my IP and claimed the first year on my tax return.
This financial year I did a large renovation, replacing kitchen, bathroom, floors, doors etc.I wonder what do I do with the old depr schedule? Do I write off the whole balance of this schedule in this FY tax return and prepare a new schedule that I can start using from this FY.
Or do I keep the balance of my old depr schedule till I decide to sell my IP and include it in cost base together with remaining balance of my new depr schedule?Thanks for any hints.
Mark
It's a bit complicated.
If you have been using the Low Value Pool, and the Assets (stove etc) you tossed out were in the Pool, they really should stay there. The new Assets you add – if they are between $300 and $1,000 – need to go into the Pool (if you're using it).
The structural work you have done you will claim at 2.5% under the building allowance.
If the bathroom and kitchen were post 85 built, you would have been able to claim the residual value in them when you tossed them out.
I would talk to whoever did the original Schedule and ask them to amend it in light of the work you've done.
Scott
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