If I have had a major renovation done to a rental property.
And I request from the builder for a breakdown cost of certain items – ie oven, dishwasher, stovetop etc for (tax purposes)
My Q. Should the builder provide this to me, or is it reasonable that they just tell me to get a depreciation company to determine that for me, “as they don’t provide cost breakdowns”. – unnecessary costs :(Hi darkness,
I wouldn’t be too stressed, and would just go get a depreciation schedule anyway. As I recall, a QS will cover a lot more ground than a builder will anyway, and usually come up with a far more complete list of depreciable items. e.g. the builder might provide the cost of a stove, but he won’t be including the cost of the electrician to install it, etc. A QS would add in all of these “hidden costs” to the stove’s value.Where a major build or renovation has occurred, I would always look to a QS for a new list (and have them remind me that all old items should be written off). A builder “might” be able to handle a really small job where just one or two items are changed…. but it is not his forte.
Benny
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