Claim Tax depreciation without Invoice

Hi there

I have bought a residential house property in Melbourne.
I was planning to live in it but I have now decided to rent it out.
As I had no plans to rent it out, I did not save all the tax invoices.
I have done substantial renovations in the house as it was in a bad shape
What's the best way to proceed to get a tax depreciation schedule.
Cheers

 

The owner is required to use their actual costs. If you cant substantiate these you have a problem. Imagine if you used scrap waste and your labour to do the work v paying trades people. Or you paid cash in the hand. The substantiation rules are there for integrity. Even if you planned to live there you should have retained the costs for the CGT records, not just depreciation. There are also state laws concerning building contacts in writing over a specific value eg $10,000 NSW.

 

Hi James, this is actually a very common scenario that my team comes across. Considering the property was intended to be a PPOR and not a rental property many people disregard the requirements to keep record of any scope of work. I suggest getting in contact with a quantity surveyor and outlining the costings for them to substantiate and prepare a tax depreciation schedule. If the property is still in your ownership, an onsite inspection would be highly suggested.

 

Depreciation schedule exceptions are narrow and relevant only to those specific deduction types and dont act as a basis for the CGT costbase. The costbase will be undertstated meaning more tax is payable at sale.