澳洲Australia property Calculating depreciation for tax return |


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi

Not sure if this is the correct place to post this.

With the financial year ending soon, I'm wondering what I need to do in order to find out how much I can put down for building depreciation on my property. It's been 2 years since I have rented the place out but this is the first time I'm looking into claiming depreciation expense to get more money back from tax.

Friend's told me I have to pay someone to come check the place out and give me a schedule, but I also read on the web ATO has a % rate of depreciation you can apply. Abit confused and hope someone can help.  

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You can have a depreciation schedule prepared by a professional, many investors choose to do this, as they are more likely to correctly estimate prices, and include everything that possibly can be. They would also have insurances you may be able to rely on in case of audit etc.

You can also estimate the depeciable items yourself, and follow the guide on the ATO website. I guess it comes down to personal choice. Do you use a registered tax agent or accountant to do your tax returns?  

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My two observations for a buy and hold investor.

1. Get a depreciation report. Whilst the cost and benefits can be variable, I haven't seen a depreciation report that hasn't paid for itself many times over, including on properties built 40 years ago.

2. Get a property savvy accountant (if you don't already use one). They'll likely find you tax deductions which you wouldn't have known about otherwise.

There's certainly costs involved in both these things but I've always found them to be well worth it.  

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but I also read on the web ATO has a % rate of depreciation you can applyClick to expand...
That's the easy bit. Once you have the construction cost of the building at the time of construction, and the written-down value of the Assets, it's easy to apply depreciation rates to them. Arriving at the values in the first place is where you might need assistance.
Scott  

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Hi Depreciator,
Whiel I got you there, I have always avoided getting a depreciation schedule done for a couple of old miners cottages in ballarat. they are over one hundred years old, and havent had any significant renovations done to them. I have my tax agent depreciate the repairs and improvements I make to the property, new carpets, stoves, blinds etc. Do you think I might be missing something?  

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well the thing is I bought this place 3 years ago and I have no idea how much was spent on renovation by previous owner. The kitchen and bathroom looks new. Also the floorboard must have been put in afew years ago. I think it'll be more accurate and easier to have a walkthrough and then give me what they think I can depreciate.

Also, can your local council tell you when the property was built or renovated? Is this information freely available to the owner?  

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It sounds like you and your accountant are on top of it, tobe.  

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can your local council tell you when the property was built or renovated?Click to expand...
The local council will often be able to tell you when a property was built, but if the renos are just internal there may have been no council involvement so they probably won't be of any help with dating them.  

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