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Depreciation - Construction Date and Cost

Discussion in 'Accounting & Tax' started by Frosty123, 25th Nov, 2015.

  1. Frosty123

    Frosty123 Well-Known Member

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    Hi all,

    How would you usually go about obtaining the date of construction for depreciation purposes? I've spoken to the real-estate agent and was advised it was around 1987 or so.
    After speaking with Logan Council, I've found the following application with Decision: Building Works Final Issued on 21 Jan, 1988.
    This date is obviously after completion of construction.

    Is there any other way I can find the cost and date of construction?

    Thanks

    Frosty
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Let the quantity surveyor do that.
     
  3. Depreciator

    Depreciator Moderator Staff Member

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    For depreciation, it's the 'construction start' date that is relevant.
    If you have a completion date of 21/1/88, it's reasonable to assume that construction started up to 6-12 months before then - assuming it's a standard house.
    That puts the relevant start date perhaps mid 87.
    If the council don't have a record of the construction estimate on file as part of the building application, you're not going to able to get it.
    Of course, if it's a recent purchase it's a moot point - there is no building depreciation left now on a mid 87 building. Any renovations after that date can of course be depreciated, as can the Assets in the property - appliances, carpet, HWS etc
    Scott
     
  4. Frosty123

    Frosty123 Well-Known Member

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    If the construction date did start after 15 September 1987, then I'd have another 12 years of depreciation at 2.5% of the original construction price? Very much doubt it was built in 4 months :(
     
  5. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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    Like Terry above, I am curious as to why you need to find this information out yourself. Is your depreciation schedule provider making you do all the research for them?
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    The trained eyes of a QS will note all more recent improvements, repairs and other works after that date ie fencing, landscape, pergola, carpets, appliances, HWS, solar etc

    Frosty might have Fullyluckys depreciation template !
     
  7. Frosty123

    Frosty123 Well-Known Member

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    I was trying to do a bit of a cash flow analysis before purchasing the property.
    Anyway, ended up just using a rough figure. Will leave the actual work up to the QS :)
     
    BMT Tax Depreciation likes this.