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Depreciation

Discussion in 'Accounting & Tax' started by Paul Luck, 3rd Jul, 2015.

  1. Paul Luck

    Paul Luck Member

    Joined:
    2nd Jul, 2015
    Posts:
    9
    Location:
    Brisbane
    I built a house in 2013 which was my PPOR until last month when it became an IP.
    I know the exact building cost.
    1. In calculating building depreciation do I create a schedule of 2.5% depreciation each year since construction then in this years tax return I only claim 1/26th of the depreciation given it was only rented 2 weeks before EOFY?

    2. How do I depreciate plant and equipment (carpets, appliances, hot water system etc) when all of these were included in total construction cost represented in 1. above? Do I work out the cost of these and deduct from the construction cost then depreciate each separately?

    3. If I bought say 8 ceiling fans at once- are these treated as 8 separate items (which can be immediately written off being <$300 each) or treated as one item?

    4. After construction I made various improvements to the house (landscaping, solar panels, shutters etc). Are all these added to the value of the building depreciation?

    5. Is there a list somewhere I can access that shows what itemss are building and what are plant and equipment?
    Thanks
     
  2. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,141
    Location:
    NSW
    Get a depreciation company to do it. Give them the building cost information, then sit back.
     
  3. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    730
    Location:
    Sydney
    1. Yes.
    2. The Assets need a written-down value as of the first available to let date.
    3. The ceiling fans are not a set and not interdependent, so could perhaps be written-off - or Pooled.
    4. Yes. Not soft landscaping, though.
    5. The ATO have a great publication called a Guide to Rental Properties. In the back you will find that information.

    But as EN710 said, if you have the costs people who do Dep Schedules won't charge much. We do dozens of these every week.

    Scott
     
    EN710 likes this.