Depreciation schedule long after purchase

Hi crew, hoping someone could help answer this.

My parents bought and settled on an off the plan investment property 3.5 years ago, it has been continuously rented since then.

I came to the realisation that they never had a depreciation schedule done.

Can one be done up now? Or is it too late? I understand the schedules would contain yearly depreciation amounts. If one can be done up now, could they use the amounts from previous years in aggregate?

Thanks.

 

You can amend prior year returns as well for the missed depreciation.

 

I would be checking the potential amendment periods - May be 2 years maybe 4 and then asking a QS to base the report start after knowing this information. If the property was first tenanted after May 2017 or after 1 July 2017 this may impact what deductions for the Division 40 element are available.

No they cant deduct on a catch up basis

Did they correctly claim settlement adjustments and borrowing expenses ?

 

Thanks for the response guys. The place was first rented in 2016. Would this have any impact?

They didn't earn much in the prior years, so I think they would be ok not having to amend prior tax returns.

Are there any recommendations for someone that can do a depreciation schedule noting the situation that it wasn't done from the very start? How much are depreciation schedules generally? Is there a requirement to gain access to the property for an inspection?

Thank you.

 

@Depreciator is good

 

A QS report is generally improved by a onsite inspection. eg A recently new miele dishwasher will have far more depreciation that a 13 year old westinghouse. And improvements and common property issues are better visually sighted. I have encountered unreliable reports based on photos etc

We recommend :
BMT
DuoTax and
Washington Brown

A onsite inspection report will cost a little extra. Perhaps.

 

Most of the Dep Schedules we do are backdated, Lance. This is a familiar request. Do your parents have an accountant? They need to be guided by them as to when they want the Dep Schedule to start. Be sure anything your parents have done since handover is captured. (And if they do have an accountant, they should ask them why they didn't cover off depreciation from the start.)