All, settling soon on small block of units and will be undertaking some repairs shorlty. My questions - 1) Should I arrange for a deprectiion report to be done right after we get keys ? 2) Should I wait to complete various minor repairs and then have report done ? 3) Should I wait before June 30 to complete report for tax preparation ? Appreciate advise on above.
Objectively speaking: 1. Most providers have a little bit of lead time between ordering a report and a possible inspection, so take that into account. Many clients are hesitant to have us inspect while a tenant is there but it's normal. If, however, you want an inspection to take place while the property is vacant, plan ahead. 2. That doesn't matter. If your works are complete (or even if you have costs and dates) before the report is completed, we can include them even if they're not recorded during the inspection. 3. That doesn't matter either, though two things to consider are a.) that things get busy for providers from May through the next six months, leading to longer turnaround times, and b.) our fees are deductible when payment is received.
Since none of the expenses are deductible the report should incorporate what you buy and also the new costs at that time. None of the "repairs" are deductible as they are considered initial repairs which are non-deductible and capital in nature and often a element of the capital works (Div 43). There wont be any Div 40 depreciation excepting any new plant & equipment replacement items you install BUT the value of what may have otherwise been depreciable will have a value in the QS report to assist reduce future capital gains
