Hi gang,
I renovated my house in Brisbane just before renting it, not long before the floods hit. After renos, I had a depn schedule drawn up using a QS to enable me to depreciate the appliances and capital works as one does.
More than half of the kitchen was destroyed by the floods, including new appliances unfortunately. In a completely separate issue, during my move interstate the removal company lost and damaged a chunk of my belongings, including all receipts for the work.
I have re-rebuilt the kitchen and bought new appliances for the tenants etc, and I have a couple of questions relating to writing off the assets as per the depreciation schedule.
1. Can I write off the cost of the appliances and part of the kitchen/capital works during this financial year, and also continue to depreciate the replacement works/appliances during the year (this would have been the first year of depn, so essentially the schedule valued the gear at 100% when destroyed) as if nothing occurred? That is, claim the written off stuff, and also the depreciation for the year? If not, how would i go about this? It seems unfair to only be able to depreciate as if nothing happened, and not write anything off.
2. If i am able to write works and appliances off, can i use the depn schedule values because I don’t have receipts?I’m doing what i can to turn a frown upside down here
thanks in advance,
Q
Hi there, sorry to hear about your situation.
First question: is this kitchen in a property that you reside in and is considered to be your PPOR? Or is it an investment property? If it is your PPOR you can't write it off on a depreciation schedule.
Aside from all this, is there a reason this is not being claimed on insurance? That's the place to be doing it…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Q,
I actually received in the mail yesterday a letter and fact sheet from the ATO in regard to your question and other situations in regard to the floods, property and claims. The letter said that I had a property in the area that was flooded or they had been informed I had a flooded property by centrelink.You might be able to download this from the net or give them a call to send you a copy.
Hi mate, it was my ppor but I have moved interstate for work so while I have the 6 year period it is considered an investment, so I have a depn schedule.
Unfortunately I chose not to insure for flood (I had landlord ins with NRMA) as I was lead to believe Wivenhoe was deigned to mitigate 95% of flood risk. My mistake.
So, can I use the values on the depreciation schedule to write off?
Thanks,
Q
Fredo – thanks mate – I got no assistance from centrelink or lord mayors fund so they may not send it to me, butill check online. Can you give me the form title?
Hi Quattro,
Sorry to hear about the house too.
The ATO publication you need is called 'Has your rental property been damaged or destroyed by a natural disaster" & it is NAT 73814-04-2011. Similar to what you would expect though, as it depends on whether it is a 'repair' or a 'replacement' or 'improvement.'
CheersThanks V8,
The excerpt “If Caitlin had just repaired the damaged carpet she would have been allowed a deduction for the repair. As the whole carpet was replaced, Caitlin may be able to claim a deduction for the adjustable value of the carpet that was disposed” frames my query perfectly.
Can i use the values on my depreciation schedule to write off, given i no longer have access to the receipts. That is, the value on the depn schedule for the kitchen work is about 10k, and around half of the kitchen was destroyed. Can i write this amount off, or can i only write off the costs of repair. This doesn’t seem fair, given the costs of repair were a lot cheaper than the original i put in.
Hi Q,
Using your depreciation schedule as a guide, contact the material suppliers and ask for a scanned copy or photocopy of the receipts. Most people will obliged and be sympathetic. It will help them help you if you can narrow down the time frame to within a few days when the order was made.
Hope this helps.
Angel
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