Forum Replies Created
With regards to your kitchen, it is part of the capital allowance, so would not ever change.
if I a kitchen cost say, $10,000 to install in the year 2000, then that is the cost you depreciate for 40 years. It has nothing to do with the current cost or value, but the cost of installation/construction at the time it was installed/built.
Hope this answers your question.
I cannot see any benefit in redoing a report on your own property as the costs would be at the date of acquisition regardless of the date the report is done.
Regards
Mike
To be strictly correct, yes you can get a Depreciation Report prepared for your PPOR.
However it will be of no use to you unless at some stage down the track, you convert it into an IP.
So there's nothing stopping you getting one now while all the costs are fresh in your mind but there's nothing to be gained from it at present.
Cheers
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
As Tyron says, this practice is not supported by the AIQS and not recommended.
Funnily enough I have the same stong views!
Low and behond that firm's website shows an AIQS logo. That is a separate issue.
Jack
The original construction cost is available for depreciation at a flat rate of 2.5% for 40 years. So it starts to depreciate from the time it is completed for 40 years. You can get 35 years of that. But as it is a flat rate you get the same every year.
What you desribe is correct . if the cost was $200,000 you can claim $5000 per year on it. So 5 x $5000 is lost by the time you acquired it.
Make sense?
Regarding the plant and equipment, the effective lift of the item at the time of acquisition to you is used. So if the plant items are 5 years old but in very good condition, you can claim them from the time you acquired them at a value we would determine at the time of acquisition. It may well be the full effective life but they would start with a slightly reduced value.
2 issues – Capital is the cost of construction. Plant is the cost of acqusition.
Cheers
Sorry got looking at the more recent posts first and your first post is well, so full of info…..
I understand you can redo 4 years of tax returns for missed claims. But that is more a Q for your accountant to confirm.
Will depend on the extent of the renos you plan to do. I would suggest a report once complete would suffice.
Lots of factors at play in your situation there. Your main claim over time is the constructon costs which won't alter greatly before or after renos.
Some talk about "scrapping schedules" which is not an offical term. Scott will have more to add on that issue.
Cheers
Yes wisepearl it is best to get a QS to visit the property.
Neither the ATO or the AIQS (Ausralian Institute of Quantity Surveyors) support the practice of doing reports remotely despite the plethora of them available.
Unfortunately the price of these still drives a lot of the market.
Normally you would include something in the Liquidated Damages section of the contract. it would allow you to insert a rate per day or week to compensate you for the delays in completion.
They are not the easiest to enforce as delaing with construction delays is a whole world on its own.
However that is what the LD clause is for and if the contractor runs over time without reason, you are entitled to claim the rate in the contract.
Hope this helps a little.
Regards
Neil
Andy
If you engage a builder then you are able to claim the profit component as it is part of the cost of construction.
if however, you buy a house from a builder who built it himself as a "speccy" then the profit is not claimable as the profit is not part of the cost of construction to the builder.
Regards
Scab
To get the 4% eluded to in another post, you yourself must own 10 or more units in the complex. That won't apply to most people.
You will get 2.5% on the construction costs, depending on age, plus depreciation on the plant items.
Regards
IJC
You have your assumptions correct, in regards to the 2.5% and the 4%.
The 4% properties used to be very popular, however their usefullness has now almost expired as most will cease to be able to be claimed this year or the next or 2012.
