Hi there,
wonder if someone can give me an idea how this works:
Last FY I organized a depreciation schedule for my IP and claimed the first year on my tax return.
This financial year I did a large renovation, replacing kitchen, bathroom, floors, doors etc.I wonder what do I do with the old depr schedule? Do I write off the whole balance of this schedule in this FY tax return and prepare a new schedule that I can start using from this FY.
Or do I keep the balance of my old depr schedule till I decide to sell my IP and include it in cost base together with remaining balance of my new depr schedule?Thanks for your comments in advance.
M.Hi Maxipes
Welcome to the forum.
This recent thread might be of assistance – /www.propertyinvesting.com/forums/getting-technical/legal-accounting/4335578
Cheers
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]
Hey Mark,
I would engage two parties, that is, your qualified quantity surveyor & your accountant. Note, ATO only accepts a qaulified quantity surveryor hence accountants don't fit this category. Ask your qualified quantity surveryor about your recent reno to prepare an amended schedule of depreciation because since you have added some value to increase its value. Your accountant should be able to use the new schedule of depreciation to prepare your FYE tax return.
Cheers Leo
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