Hi all
I have only recently purchased a new IP and so haven't had a depreciation schedule conducted on it yet. Are there any calculations available for annual depreciation. Details are pp $266,000, up to date land valuation $135,000, 1986 build. Anything else required??
In your financial due diligence calcs for purchasing, do you include depreciation in your calcs, or is this icing on the cake (as it is for me – a bonus at tax time)
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
You'll need to get a quantity surveyor to prepare a report – that's the only way you'll get an accurate record of depreciation.
There's some online calculators that you can use – but they aren't very accurate.
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]
mmm, as I thought. I saw a calculation online that really looked too simple. Will wait for the QS
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
Being built in 1986 there isn't, in general terms, much left to depreciate.
Properties built between July 18 1985 & Sept 15 1987 attracted a 4%/annum rate of building depreciation over 25 years. As we have now entered the 27th year of this property your capital allowance will probably be zero.
Having said that any renovations may have kicked your capital allowance depreciation on a little longer.
At the same time you should still be eligible for plant and equipment depreciation claims – but given the age of the property these, too, may be negligible.
Recommend you phone a QS who is also a member of the Australian Institute of Quantity Surveyors. From memory Institute members will refund your fee if they cannot identify claims higher in value than your fee.
I've never seen a depreciation schedule that hasn't paid for itself within the first year or two – even for older properties.
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]
Many thanks Derek,
Appreciate the comments. My accountant has recommended a QS report and I called BMT a little while ago. After giving them the property address, they still appeared keen to go ahead so we'll see the outcome.
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
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