澳洲Australia property propery tax depreciation | Sydney

在澳大利亚


Does anyone know how to claim the tax depreciation for rental property? I bought a rental property last year. Over 40 years old house. I renovated the bathroom after settlement by paying someone in cash, of course no receipt. Also I bought some furnitures for each room in second hands and paid in cash as well. In that case, Is it worth to use Deppo to calculate the tax depreciation? What should I do for tax depreciation? Anyone know alternative way?:confused::confused:  

评论
May want to toss this in the section above. i.e tax/accounting rather than finance.

likely to have more luck with an answer there :)


Regards
Steve  

评论
newinvestor07 said: ↑
Does anyone know how to claim the tax depreciation for rental property?Click to expand...
Oh there might only be a thousand or so members on this forum that would know this :rolleyes:

newinvestor07 said: ↑
I bought a rental property last year. Over 40 years old house. I renovated the bathroom after settlement by paying someone in cash, of course no receipt. Also I bought some furnitures for each room in second hands and paid in cash as well.Click to expand...
Because you used cash and did not get a receipt for either of these things you are probably not entitled to claim interest on a loan that you may have used for this - silly. However, you can get depreciation.

newinvestor07 said: ↑
In that case, Is it worth to use Deppo to calculate the tax depreciation? What should I do for tax depreciation?Click to expand...
The only avenue open to you now to claim depn is to get a QS to do a depreciation schedule for you. IF you had receipts it might have just been an accounting job.

edit: welcome - I see it is your first post :)  

评论
Bradsdad said: ↑
May want to toss this in the section above. i.e tax/accounting rather than finance.

likely to have more luck with an answer there :)


Regards
Steve

Thanks Steve, I will do that.:)

ViviClick to expand...
 

评论
Propertunity said: ↑
Oh there might only be a thousand or so members on this forum that would know this :rolleyes:


Because you used cash and did not get a receipt for either of these things you are probably not entitled to claim interest on a loan that you may have used for this - silly. However, you can get depreciation.

The only avenue open to you now to claim depn is to get a QS to do a depreciation schedule for you. IF you had receipts it might have just been an accounting job.

edit: welcome - I see it is your first post :)Click to expand...
Hi there, I really appreciate your help. Yes I am new in this "industry", and I did some silly things. I chose to pay cash as it was cheaper. Don't laugh at me. I will learn from my lesson, but it is hard way apparently. I even did not know that I can claim interest of expenses on renovation. I am wondering how many years I can claim the interest.:eek::eek:

Again, thank you very much for you help!

Kindly regards

Viv  

评论
newinvestor07 said: ↑
Hi there, I really appreciate your help.Click to expand...
You are most welcome Viv :)

newinvestor07 said: ↑
Yes I am new in this "industry", and I did some silly things. I chose to pay cash as it was cheaper. Don't laugh at me. I will learn from my lesson, but it is hard way apparently. I even did not know that I can claim interest of expenses on renovation.Click to expand...
Well you live and learn. Show me someone who has never made a mistake and I will show you someone who has never attempted anything :p Good onya for having a go.

newinvestor07 said: ↑
I am wondering how many years I can claim the interest.:eek::eek:Click to expand...
Potentially forever. That is to say if you only ever serviced the debt by paying interest only - for as long as you own the property.  

评论
Propertunity said: ↑
You are most welcome Viv :)

Well you live and learn. Show me someone who has never made a mistake and I will show you someone who has never attempted anything :p Good onya for having a go.

Potentially forever. That is to say if you only ever serviced the debt by paying interest only - for as long as you own the property.Click to expand...
Woo, that means I will lost heaps:(:(. What about some works which have been done by myself or friends? I am sorry about the questions which I've never think them before. Now more answers you give me, more new questions I have. Do you suggest that I should read some books or some related information from web?

Thank you, expert:cool:  

评论
newinvestor07 said: ↑
What about some works which have been done by myself or friends?Click to expand...
Puts hands over ears and loudly shouts la la la la la la la I can't hear you. The ATO does not allow deductions for your own labour. Ultimately people generally find it is hard to know who did the work - maybe it was a tradesman (friend). It would probably have to be a tradesman actually. If they kept a diary and receipts it would be better than relying on memory.

I recommend a QS report - they will have to estimate value of works and materials if you can't recall and don't have receipts.

newinvestor07 said: ↑
I am sorry about the questions which I've never think them before. Now more answers you give me, more new questions I have.Click to expand...
Q's are fine. Keep asking until you are satisfied.

newinvestor07 said: ↑
Thank you, expert:cool:Click to expand...
Oh I am not an expert :p  

评论
Shucks propertunity you are so modest! LOL  

评论
Viv, just on this:

I chose to pay cash as it was cheaper.Click to expand...
I usually pay cash for work done, but I still ask for (and always get) a receipt. Whether the tradies declares that cash or not isn't my problem.

Regarding claiming depreciation for that house of yours, send me an email with details of what you did and any photos you have. I'll tell you how to sort it out.

[email protected]  

评论
Propertunity said: ↑
Potentially forever. That is to say if you only ever serviced the debt by paying interest only - for as long as you own the property.Click to expand...
I was thinking while I was dreaming last night. What about the interest I paid for the loan of IP (I am paying for interest only)? Can I claim the interest forever?:(
what about I paid someone (neighbour )to mow my lawn, but he has no ABN number as he is not running a business?:confused::confused:

Thank you for guiding /encouraging me to thinking deeper:)  

评论
newinvestor07 said: ↑
Thank you for guiding /encouraging me to thinking deeper:)Click to expand...
You're welcome. Just as long as you don't dream about me, I can sleep easier :eek:  

评论
depreciator said: ↑
Viv, just on this:



I usually pay cash for work done, but I still ask for (and always get) a receipt. Whether the tradies declares that cash or not isn't my problem.

Regarding claiming depreciation for that house of yours, send me an email with details of what you did and any photos you have. I'll tell you how to sort it out.

[email protected] to expand...
Hi Depreciator, Thank you for trying to help me. I will send to you when I get photos. I know that the building cannot be further depreciated after 40 years. But I heard the previours owner said that he had done lots of things after he bought it in 1970th. such as fence, gutter and all the windows were replaced/changed, also built a shower room in the back yard... However, I didn't ask him which year he did those of things. I am sure not many years ago by appearence. Is any chance or way I can have depreciation for those?:confused::confused: Hopfully I didn't cofuse you:p

Best regards

Viv  

评论
Propertunity said: ↑
You're welcome. Just as long as you don't dream about me, I can sleep easier :eek:Click to expand...
Heeey:eek::eek::eek:,

You haven't answer my questions yet. Please tell me the answer, so I can sleep well tonight.:D

Wish you have a good night

Viv  

评论
Oh I thought you were just telling us about your dreams and how they made for a restless night :confused:

newinvestor07 said: ↑
I was thinking while I was dreaming last night. What about the interest I paid for the loan of IP (I am paying for interest only)? Can I claim the interest forever?:(Click to expand...
Yes, as long as you are alive, have a loan where you can pay IO forever & a property - sure.

newinvestor07 said: ↑
what about I paid someone (neighbour )to mow my lawn, but he has no ABN number as he is not running a business?:confused::confused:Click to expand...
Get a receipt.  

评论
Propertunity said: ↑
Yes, as long as you are alive, have a loan where you can pay IO forever & a property - sure.Click to expand...
Thank youuuu:) one more question for today as I want to make sure that I really understand the "forever":

1. If I spent $1k on my IP this year, then I can claim interest of $1k at the end of financial year, also I can continue to claim the $1k on the following years as well --forever???:confused:

2. If I pay $10K each year on interest of loan for the rental property, I can claim interest of $10k in the first year, and claim interest of $20k in the second year, interest of $30k of third year, and so on--forever?????:confused:

Don't tell me I am delusional:p:p That is how I understand so far but it seems not real to me. I really want to have a good night sleep, please tell me the answers.

Really really appreciate your advice!

Viv  

评论
newinvestor07 said: ↑
Thank youuuu:) one more question for today as I want to make sure that I really understand the "forever":

1. If I spent $1k on my IP this year, then I can claim interest of $1k at the end of financial year, also I can continue to claim the $1k on the following years as well --forever???:confused:

2. If I pay $10K each year on interest of loan for the rental property, I can claim interest of $10k in the first year, and claim interest of $20k in the second year, interest of $30k of third year, and so on--forever?????:confused:

Don't tell me I am delusional:p:p That is how I understand so far but it seems not real to me. I really want to have a good night sleep, please tell me the answers.

Really really appreciate your advice!

VivClick to expand...
Hi Viv,

I think you have it slightly confused. You can only claim an expense once. If you claim it this year you cant claim in next year.

If, for example, you have receipts/statements, for all expenses (including interest), of say $10k dated between july 08 and june 09 then you claim $10k in the 08/09 financial year and thats it. The following financial year you would only claim any expenses incurred between 09/10 financial year etc.

Hope that clears it up.  

评论
Electro said: ↑
Hi Viv,

I think you have it slightly confused. You can only claim an expense once. If you claim it this year you cant claim in next year.

If, for example, you have receipts/statements, for all expenses (including interest), of say $10k dated between july 08 and june 09 then you claim $10k in the 08/09 financial year and thats it. The following financial year you would only claim any expenses incurred between 09/10 financial year etc.

Hope that clears it up.Click to expand...
Yes, it does. I am sorry for the stupid thoughts. Thank you so much! I am so lucky to join this forum and have a chance to meet all of you, awesome and knowledgable people, here.:):):):):)

Best regards

Viv  

评论
newinvestor07 said: ↑
Don't tell me I am delusional:p:pClick to expand...
You are delusional:p

Viv,

Here's an example. You have to pay rates on your IP of $2K (say). Your LOC balance is zero at present (say). You pay the rates out of your LOC. You can claim interest charges as a tax deductible amount on your $2K LOC forever IF you never repay the principal and only service the LOC debt by paying interest only.

i.e. say you are paying 6% on your LOC. Interest would be $2K x 6% = $120.00. This $120 is tax deductible each and every year forever for the life of your loan, property and you.

Go to bed with that on your mind :)  

评论
Propertunity said: ↑
Viv,

Here's an example. You have to pay rates on your IP of $2K (say). Your LOC balance is zero at present (say). You pay the rates out of your LOC. You can claim interest charges as a tax deductible amount on your $2K LOC forever IF you never repay the principal and only service the LOC debt by paying interest only.

i.e. say you are paying 6% on your LOC. Interest would be $2K x 6% = $120.00. This $120 is tax deductible each and every year forever for the life of your loan, property and you.

Go to bed with that on your mindClick to expand...
Hi Propertunity,

I had a good night sleep last night as I thought I understood after reading Eletro's post. I realised that I didn't 100% understand after reading your post. I think I've finally got it. A bit slooow:D. It seems this is a different world. Now I've got more questions.

LOC you mentioned above, is it a normal account? How do I set up LOC? I understand that all expenses on IP coming from LOC. I have not had a such account. The expenses are all over the place:mad:.

1. stamp duty I paid for IP was from my saving account, am I allowed to withdraw the same amount for stamp duty or other expenses from LOC(after I have a one) to pay into my saving account, so that I can claim the interest.:p

2. Other bills for IP I paid via my credit card, then I paid back by using T/F money from my saving account. How is it going to work? Should I get money from LOC to my saving account?
After all , it is going to be handy, isn't it?:cool:

Heeeeeeeeeeeeeelp, confused again:confused:

Viv  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...