Hi all
I went to see my ccountant yesterday re turning my current home into an investment one. To give you a few details my house was built in 1984, we paid about $350k for it and borrowed roughly $290k to purchase it. When I was asking my accountant what I could claim and roughly how much I could expect back in tax he just said get your agent to pay everything get a statement at the endof the year and send it to us. Surely it can't be that simple , can it ? Also how do you know if your accountant is claiming everything you are entitled to ?
Thanks for your help
You could pay to get a depreciation report, but as it was built in 1984, depreciatiopn on the building would almost be finished. If any major appliances were replaced (air conditioner, oven, dishwasher etc) you could look at claiming depreciation for these, depending on when they were replaced.
The ATO release guidlines as to what can and can't be claimed, or try and meet with a new accountant.
There are some quantity surveyors who will have a quick phone chat with you and determine if it is worth doing a depreciation report (as you'd be surpirsed just what you can claim!). They should do this call for free. It would be worth investigating as they are the experts and even accountants can miss items.
I'd suggest BMT quantity surveyors if you want to start with someone…Do you have any outstanding loan against the property?
Definately get a DS done. I had 2 houses built in 1905 and one post war done by BMT. Definately worth it. They charge about $600 (also a tax deduction) and the report is easy to read.
First get a new accountant that will spend more than 30 seconds explaining how it works.
Rent is an income. Take away all the costs (Management fees, Interest, rates, repairs etc) take that away from the rent. If you get a depreciation report you take that away too. If the expenses are more than the rent you claim that as a tax right off.
You can do rough figures yourself.
Hi LH we have about $260k owing
I'm yet to see a depreciation schedule that hasn't paid for itself in the first year.
The oldest IP I own is in Wagga – it was built in the 1960s.
I was able to depreciate $2,100 this financial year. The report only cost me $220 (my clients and I get a discount with a national company).
This $220 outlay has more than paid for itself.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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