Hi all,
I was speaking to my accountant the other day and he suggested that when I get close to the fifth year of my depreciation report, that I should get another conducted as it will increase the depreciation value again as some things hold their value.I have also read this in a book and a magazine article but did’t take much notice.
In theory it works ie after you get to 5 years your kitchen may not have much wear and tear so when the QS goes in it may still be close to the value it was 5 years ago.
But from a tax point of view it may not be right.
But then back to the other hand a QS is a professional so it he says what it is worth after 5 years would go…. possibly
Not that I don’t trust my accountant but I have found out things on here that many people don’t know about.
Any guidance would be greatly appreciated.
Sounds interesting, but wouldn't that mean you would be claiming more than 100% of the cost or value of the item.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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
Hi Fredo 4305
No point at all unless something significant has changed. ie. major reno's or if you had a very poor report done in the first place
the report is valid for that purchase
kind regards
George smit
CONDEV DEPRECIATION SERVICES
http://www.condevds.com.auHi,
From a tax perspective depreciation and capital works deductions are based on cost.
A QS report is simply a means of determining what cost is when a property is acquired and details are not available for depreciable items and capital works.
As such, it would not be possible to re-assess the cost of existing items with a new QS report. Further, the ATO would generally expect that any deductions for depreciable items and capital works acquired post settlement be based on the actual cost and not a QS report. Ie if you paid for them you should have the details of what the actual cost was.
As such, I think that obtaining a new QS report is not appropriate.
Ashley C wrote:Hi,Further, the ATO would generally expect that any deductions for depreciable items and capital works acquired post settlement be based on the actual cost and not a QS report. Ie if you paid for them you should have the details of what the actual cost was.
As such, I think that obtaining a new QS report is not appropriate.
Hi Ashley C,
Except for in the case where the property was the principal residence, then the ATO will accept that the taxpayer was not obliged to keep detailed cost records and will accept a QS report,
kind reards
George Smit
http://www.aaaonlinepds.com.au
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