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Depreciation schedule report for 20 years ?

Discussion in 'Property Finance' started by Tekoz, 15th Mar, 2016.

  1. Tekoz

    Tekoz Well-Known Member

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    people,

    My friend told me that it is better to ask for 20 years for Depreciation report rather than 40 years.

    Since I don't plan to hold the investment property for longer than 20 years anyway, which company can assist me with 20 years depreciation schedule ?

    BMT & Washington Brown does 40 years by standard and quite expensive $695 per report per property.
     
  2. Adele

    Adele Well-Known Member

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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Why not ignore the last 20 years if you dont need it?

    The report shouldnt be any cheaper
     
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    People who organise schedules quite often (such as Property Managers) get a bulk discount...
     
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  5. Tekoz

    Tekoz Well-Known Member

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    @Terry_w well, rather than spreading it out over 40 years, I am thinking to get it more each year when it is depreciated over 20 years.

    isn't that true @Depreciator ?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Building works is spread over 40 years. You cannot choose to accelerate claims.
     
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  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    So you can just change the ATO's rules to suit yourself?
     
  8. EN710

    EN710 Well-Known Member

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    How it's depriciated would depends on tax rule - having 20 years data vs 40 years won't change the number. That's my understanding anyway
     
  9. Depreciator

    Depreciator Moderator Staff Member

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    Your friend is a bit confused, Temoz. But they're not alone.
    We get people all the time who when they find out our Schedules run for 20 years say, '20 years? Are you crazy? I'll be dead by then.' And they go off mumbling to themselves and looking for someone with a shorter Schedule.
    As said above, buildings constructed after September 87 get written-off at 2.5%pa. There is no way to speed that up. Assets (appliances, carpet etc) get depreciated according to their Effective Life, though the Low Value Pool speeds things up.
    Of course, when a property changes, the Schedule needs to be updated. New stove? Kitchen reno? Hot water heater? They all require the Schedule to be changed.
    So rather than look for the longest running one, I reckon it's more important to find a company that will update your Schedule as often as you want without charging. That's what we have always done.
    Scott
     
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  10. larrylarry

    larrylarry Well-Known Member

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    @Tekoz seek advice from a professional because that is wise.
     
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  11. Tekoz

    Tekoz Well-Known Member

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    Yes, I believe this is a professional forum :cool:.