Hi all
I’m new to the property investment game, and am going to prepare my own tax return.
Does anybody know of a guide to what you can claim and how to calculate certain expenses in relation to property?
I just saw a good thing on Today Tonight tonight[
] that showed quantity surveyors valuing the depreciation on all fixtures in the IP including building and reno costs before the owner even bought the house. Check it out on their site.Nu Gen
Hi Craig,
Agree with nu gen, source a QS and get them to do a depreciation schedule for you. It will make your life easier!!
Cheers
KymG’day Craig,
Unless you are an accountant, do yourself a favour and get a good QS and employ the services of a good accountant experienced in property. His cost will pay for itself in no time.
Neddy1Have a look on the ATO website. It has a number of documents about rental properties and what is claimable and what is not
Hi guys
Thanx for the replies.
I saw the Today Tonight special too. As it happens, I am an accountant [
] and already know about the depreciation expenses, . All’s I want is to make sure that I don’t miss out on anything else that might be claimable.I did find some very basic information on the ATO website. Basically just a schedule that you lodge at year end. It’s like a maze in there.
craigl
i’ve posted this before, used them (and was happy) and was suprised to find a few other people i know utilising the services of DEPPRO depreciation Proffessionals…. no, no kickbacks for me, my mum doesn’t work there or anything..
read a story in the West Australian Newspaper about this girl in her early 20’s who owned about 5 properies and was buying her 6th (she works in real estate.. hang about ‘check out today tonight, think she was on there ) Anyway she used them… so i chased them down.. dont type in depro on the i-net..its deppro.. or else you get a german paint company [:0)]
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Neddy1,
Even good accountants would employ a QS because what a QS does is quite different from what the accountant does. The accountant takes the information prepared by the QS for input into the tax return but it is the QS who has the specialist knowledge – particular brilliant in claiming proportion of common property in home unit town house complexes.
bribie
redwing
I believe that deppro used to be Herron Todd White depreciation specialists, and changed the name when they didn’t want to be confused with Herron Todd White valuers anymore. I presume that they are still linked though. Good company.
Cheers
MelIf you are an accountant then you would probably be aware of the recent case handed down by the Administrative Appeals Tribunal regarding depreciation on rental properties. There was a short article on it in the CPA magazine at the beginning of the year. I think you can look up the actual case on the ATO website. It was FCT v McCormack from memory. The crux of the case was the plaintiff’s claiming of depreciation on things like kitchens, bathroom tap fittings, hot water systems, doors etc…all of which the commissioner denied.
As for what you can claim on a rental property in the way of expenses….the basics are, council rates, management fees, borrowing costs, interest, repairs and maintenance (be careful here as the ATO takes a fine line between what is a repair and what is an improvement and therefore depreciable), water rates, gardening, cleaning, etc.
The Quantity Surveyors report is an excellent investment, just make certain that the QS you choose is up to date with current Administrative Appeals Tribunal cases and ATO rulings. I believe that you must have a QS to claim the special building write off.
Hope this sheds some light on the issue. Oh yeah you can have a look for the article on the case I mentioned at CPAAustralia.com.au (I think) or just do a search for CPA Australia.
] that showed quantity surveyors valuing the depreciation on all fixtures in the IP including building and reno costs before the owner even bought the house. Check it out on their site.
] and already know about the depreciation expenses, . All’s I want is to make sure that I don’t miss out on anything else that might be claimable.
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