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Are depreciation shedule for old houses worthwhile for tax purposes ?

Discussion in 'Accounting & Tax' started by Kangaroo, 22nd Oct, 2015.

  1. Kangaroo

    Kangaroo Well-Known Member

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    Can anybody comment on the above ? Never did it before, rented out for years already.
     
  2. sash

    sash Well-Known Member

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    Yes definitely...particularly if they were built between 1985 and 1988 where the depreciation allowance was 4% on building....and there is 7-10 years of this depreciation.

    If the quantity surveyor deems the building cost is 200k you will get 8k just in building depreciation. If you get another couple of thousand in fixture and contents that is further bonus....
     
  3. House

    House Well-Known Member Premium Member

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    Always!

    When was the house built?
     
  4. Kangaroo

    Kangaroo Well-Known Member

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    One in 1970s and one in 1990s, not sure of exact age.
     
  5. York

    York Finance Broker Business Member

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    Most definately. You can speak with @Depreciator who is a quantity surveyor and a trusted PC member who has done countless schedules for members. He is friendly and always willing to assist in any questions. :)
     
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  6. Waldo

    Waldo Well-Known Member

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    A lot of the time, a full inspection won't really pay for itself and you might be better off doing a checklist (with photos) style report.
     
  7. HUGH72

    HUGH72 Well-Known Member

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    I'm not a accountant but the 4% allowance which was introduced by the Labor Government when negative gearing was withdrawn would have now been used up. It was only over 25 years from construction not 40.
     
  8. York

    York Finance Broker Business Member

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    Correct. 4% was only for 25 years. For 40 years it is 2.5%.
     
  9. York

    York Finance Broker Business Member

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    4% was between 22 August 1984 and 15 September 1987 for 25 years.
     
  10. sash

    sash Well-Known Member

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    I stand correct......those years you do get 4%....still I believe....
     
  11. York

    York Finance Broker Business Member

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    Forget about the one in the 70's. Anything before 1979 has a nil rate.
     
  12. York

    York Finance Broker Business Member

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    Na Sash. At the latest it would have been 2012.
     
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  13. HUGH72

    HUGH72 Well-Known Member

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    It might have had some renovations possibly or new air con or HWS etc.
    I bought a relatively cheap 1960s house earlier this year which because of some internal improvements has about $3700 of depreciation to be claimed for the 15/16 FY.
     
    Last edited: 22nd Oct, 2015
  14. sash

    sash Well-Known Member

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    It should have read I stand corrected yes you are correct....I know the 4% depreciation was given over a 3 year period in the 80s...than it was brought down to 2.5%!

    Just realised if it was 4% pa...the depreciation would run out by 1998.

    2.5% would run out by 2013.

    The beauty is anyone who bought before (1985 I think) do not pay any capital gains...how good is that...
     
  15. York

    York Finance Broker Business Member

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    Yep. ..I was referring to capital works. But sure, improvements/fixtures no prob.
     
  16. York

    York Finance Broker Business Member

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    Yep..20th September 1985. What a lucky position to be in whoever still has any IPs purchased before that.
     
  17. sash

    sash Well-Known Member

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    The golden oldies might have done that! I was in my teens back then...York I reckon you were a twinkle in someone's eyes...;)
     
  18. York

    York Finance Broker Business Member

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    Haha... I'll take that as a compliment if you think I was born after 85. But unfortunately I was born before that. :) It must be my slight body shape that makes me look young. :D
     
  19. Chilliblue

    Chilliblue Well-Known Member

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    For our last purchases built in the 60's with a few refurbishments, we are receiving over $3-8k per annum return so always worth an inspection.

    If there first years return does not cover the cost of the report, most firms will not charge you a fee so always ask.
     
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  20. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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