Depreciation report worthwhile if demolishing a house

I recently bought a house and intend to demolish it within the year in order to do a 1 into 4 lot subdivision. Should I still get a depreciation report done? I won't be able to claim tax deductions on the holding costs as it is a development so I don't see the purpose of a depreciation report.

 

Will you be renting it out before demo?
Will you be building and renting out the development?

 

If the property will produce some income before demolishing have a chat with a company or two about a scrapping schedule schedule.

 

Yep, the key, as Chilliblie said, is to rent it out for a while. Then when you knock it down you can claim the residual value of the Assets and possibly any building works or renos - dependent on when the works were done.

Scott

 

Thanks all for the replies.

I will be renting the property to the original owners at settlement while at the same time start the subdivision applications with council. I will be selling everything once subdivided.

Also, not sure if relevant but property was purchased under a discretionary trust.

Will have a chat with my accountant next week but would be great to also hear other peoples opinions prior to meeting them.

 

You might be out of luck with claiming the stuff you toss out if you are planning to sell up when complete. Your accountant will advise.

 

Thanks depreciator. I had a similar thought so wanted to check with this board first. Will see what my accountant says.

 

And who knows, i might end up changing my mind and keep some of the lots.