Do you think your property is too old to worry about a depreciation report?
Many investors remain unsure about whether it is worthwhile obtaining a depreciation schedule for a rental investment property that was built before 1987.
Current tax legislation states that any property built before 15th of September 1987 (residential) and 20 July 1982 (non-residential) cannot claim the capital works allowance as a deduction. This often results in the investor not thinking to obtain a depreciation report as they believe that their property is too old. However it is worth enquiring about any property – even one that is 100 years old!
In the case of older properties, it is worth noting that a capital allowance and tax depreciation report covers not only the capital works allowance but depreciation of plant and equipment as well. This means that all properties that obtain an income by the way of rent should be eligible to claim a deduction for the plant and equipment items contained within the property.
Even if a property is too old to claim the capital works allowance for the building structure, the investor will still be eligible to claim the plant and equipment allowance.
Additionally, if extensions or renovations were completed after 1982 (non-residential) or 1987 (residential), they will attract the capital works allowance.
What types of plant and equipment items can be claimed?
Many plant and equipment items contained within a property are able to be depreciated over their effective lives.
Some of these items include:
|
|
|
If you’re unsure about your property’s depreciation potential contact us and we can provide a depreciation estimate. Additionally, if we inspect a property and believe that it’s not worth completing a depreciation schedule, we will not charge you for our services.
Hi could you clarify for me the date in which a property is ineligible for capital works deduction, is it prior to 1985? In a Margaret Lomas book it mentions a date of 15 Sept 1987?
Richard.
Hi Richard, thanks for the great question, someone will be in touch shortly with a definitive answer for you. Have a great day!
Hi I like to get a QS schedule on my investment properties
Questions
Q1- Cost per unit (in Auburn NSW 2144)
Q2 -Does it require an on-site inspection (meaning I have to organise with my tenants to open the door)
Q3 – When can it be organised
Q4 – Does the age of the apartment matter, most age 9-10 years but one is at least 30 years
Hi Robert, someone will be in contact shortly.
Thanks
Hi,
I have an old brick veneer 4 bedroom house (possibly built 1970s) in St Albans Victoria 3021 that I intend to rent out.
I have read your website page “Do you think your property is too old to worry about depreciation?”
Following from this I am considering in getting a BMT report for this property.
Please advise if this is a good idea, and if you would be able to get someone out to look at the property
Hi Cuong,
Thank you for your question. We are happy to discuss this further with you. A colleague of ours will be in contact soon, but we will require further information to better assist you. Can you please confirm that cuonguyem@gmail.com is your best email and are you able to provide us with a contact number, or alternatively you can call us on 1300 728 726. We’ll need to know the purchase date, whether you’ve rented the property out previously or this is the first time, and whether you have done any renovations on the property.
Look forward to hearing from you soon.
Hi my name is luke robinson,I just have a quick question that you can hopefully help me with. I had a property that I sold about 2yrs ago,I never claimed any depreciation at all,I had the property for 10 yrs,was I entitled to some sort of return??if so can I claim that now??any info would be greatly appreciated. Thank you
Regards
Luke
Hi Luke, thanks for your question.
As you have sold the property, it is best to chat with your Accountant first off. If you’re Accountant advises you to have a Tax Depreciation Schedule done, you will require permission from the current owners for us to do an inspection. I hope this helps. If you need further help please call us on 1300 728 726 or email us at info@bmtqs.com.au
I have an older unrenovated property in Salamnder Bay NSW. Would appreciate some advice regarding whether it is worth getting a depreciation schedule for this property. Your help appreciated.
Hi Travis, thank you for your request. For your protection we’ve deleted your contact details from your comment. One of the team have been in contact with you by email and phone. If you need further help feel free to give us a call on 1300 728 726. Cheers.