How long can you claim depreciation on a house ?

Viewing 10 posts - 1 through 10 (of 10 total)

Marshes
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@marshes
Join Date: 2009
Post Count: 33
June 6, 2010 - 2:20 pm
I was just curious as to how long you can claim depreciation on a unreno’d house.
I.e
If i bought a 30yr old house, then rented it out can i still claim depreciation on the house ?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 7, 2010 - 12:49 am
If it was built after 1987 you can claim depreciation for up to 40 years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Marshes
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@marshes
Join Date: 2009
Post Count: 33
June 7, 2010 - 1:24 am
Hi Terry,
The house first sold in 1985, so built before 1987. Where does that leave me ?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 7, 2010 - 1:34 am
You will have to check, there was short period where you could clam 4%, it is around 1985 to 1987 where it then changes to 2.5% for 40 years. Prior to that it is nil.
Best to get a quantity suveryor in.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
akirk
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@akirk
Join Date: 2009
Post Count: 42
June 7, 2010 - 2:35 am
Washington Brown have an online calculator that should give you a good indication.
http://depreciationschedule.washingtonbrown.com.au/depreciation-schedule-quote/
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
June 7, 2010 - 4:44 am
If any work has been done on it since the initial construction (ie value added), that too can be depreciated. Get a QS.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 7, 2010 - 4:46 am
And don't forget the fittings
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Marshes
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@marshes
Join Date: 2009
Post Count: 33
June 7, 2010 - 5:59 am
How can i find out when the house was built ? ive looked through the contract and cant see where its stated. i have a residex report that says it was first sold in 1985 but no word of when it was built ;(
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
June 7, 2010 - 8:02 am
Try council records
KateMelb
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@katemelb
Join Date: 2010
Post Count: 71
June 9, 2010 - 3:27 am
If your property was built after July 1985 you will be able to claim both the Building Allowance and for Plant and Equipment. If construction commenced prior to July 1985, you will only be claim depreciation on Plant and Equipment (i.e. carpet, blinds, ovens etc).
A title search and Council records may help in nailing down the construction timeline.