I’m investigating having a depreciation schedule done.
Since I purchased my PPOR (2 bedroom flat) in 2008 I’ve had renovations done to it and a cosmetic makeover, including:
– Removal of wall for open plan,
– New kitchen and appliances,
– Painting of walls,
– Handles and Locks,
As I am still living in the property thus the PPOR I would like to know if it is recommended to have a depreciation schedule done. Will I gain any benefit; and is it tax deductible in my situation.
I intend to turn this property into an IP in the next 6-24 months.
Appreciate any assistance.
MiikeJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I was just going to write the same thing. No benefit now, so you might as well wait. You may find you fix or improve things before moving out and would want these included in any report.Rob G.Participant@rob-g.Join Date: 2010Post Count: 70
If the PPOR is rented for the first time, you would likely need to get a market valuation of the PPOR for CGT purposes anyway. You could get all your schedules done at that date for convenience.
Thanks for the quick replies everyone.
If I was to have rent out one of my rooms and as it is a 2 bedder I believe I would be able to claim some sort of percentage or the like as an IP.
If this is the case, would a depreciation schedule then be viable due to the room seen as an IP?
Thanks everyone, really appreciate the quick responses!
MiikeTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
You can do that and depreciate assets in proportion. But beware as you will lose the CGT exemption on the house. Which may cost you must more than you will save in the short term.